Carbon Markets & Inflation

The video discusses the role of carbon markets in reducing global emissions, highlighting the European Emissions Trading System and China's market. It examines the effectiveness of carbon markets, noting a 40% reduction in emissions in Europe since 2005. However, achieving net zero emissions solely through carbon markets would require extremely high prices, making additional policies and investments necessary. The International Energy Agency suggests that combining carbon markets with other policies could make achieving net zero more feasible. The video concludes that carbon markets are vital but should be part of a broader strategy.

Which carbon market is currently the largest in terms of emissions covered?

• China's Carbon Market

• California Carbon Market

• India's Carbon Market

• European Emissions Trading System

What percentage decline in emissions has been observed in the European Emissions Trading System since 2005?

• 20%

• 30%

• 50%

• 40%

How do carbon markets help in hedging against inflation?

• By stabilizing fuel prices

• By following the marginal abatement technology price

• By increasing the supply of carbon credits

• By reducing the cost of renewable energy

What is the expected carbon price in the EUETS by 2030 according to B&EF?

• $500 per ton

• $250 per ton

• $170 per ton

• $100 per ton

Why is it important to combine carbon markets with additional policies?

• To reduce the cost of carbon credits

• To achieve net-zero emissions more effectively

• To stabilize global fuel prices

• To increase the number of carbon markets