Carbon Markets 101: A Beginners Guide to Carbon Markets | Dr. Roger Cohen, PhD

Dr. Roger Cohen is an entrepreneur, focused on addressing climate change through innovative solutions. He leads C2Zero and the Real Carbon Price Index (RCPI), initiatives aimed at reducing carbon emissions. Roger was part of the founding team at BetaShares and has held senior roles at Macquarie Bank, Deutsche Bank, and NatWest. Roger has lectured in risk management to engineering students at the University of Sydney and serves as a senior adviser at the Monash Centre for Financial Studies. A Fulbright Scholar in the USA in 1988, Roger holds a PhD in Mechanical Engineering from the University of Sydney and is a Fellow of the Financial Services Institute of Australia. Links ____________________________________ Roger’s Profile: https://www.linkedin.com/in/portablebeta/ Effectiveness of compliance market mechanisms: https://doi.org/10.1016/j.jclepro.2024.143761 Only 20% of emissions are covered by compliance schemes: https://www.realcarbonindex.org/ Less than 16% of carbon credits issued constitute real emission reductions.https://doi.org/10.1038/s41467-024-53645-z Corporations creating demand for low-integrity carbon offsets: https://doi.org/10.1038/s41467-024-51151-w Renewable energy offsets are no longer considered ‘high integrity’: https://icvcm.org/carbon-credits-from-current-renewable-energy-methodologies-will-not-receive-high-integrity-ccp-label/ Timestamps ____________________________________ 0:00 Intro 1:00 - Consilience and Siloed Thinking 3:55 - A brief overview of carbon markets 18:06 - What are compliance carbon markets? 23:00 - Example 1: Carbon Tax 26:45 - Example 2: Emissions Trading Schemes 34:22 - Are compliance schemes effective at reducing greenhouse gas emissions? 40:00 - Are compliance schemes reducing emissions fast enough? 46:22 - Summary of compliance carbon markets discussion 47:41 - What is the voluntary carbon markets? 49:31 - What are carbon offsets? 54:47 - What is the problem with carbon offsets? 1:04:07 - Do we need carbon offsets? 1:08:57 - Prognosis on the future of carbon markets