S3E7: Do compliance markets work? If so, how much?—w/ Mike Azlen, CEO of Carbon Cap Management LLP
Episode description
We have talked at length on previous episodes about the flaws in compliance markets. And the team at Nori obviously believes in voluntary carbon markets, as we’re building one ourselves.
But there’s a wide range of quality among voluntary markets, and the space is 1,000 times smaller than the compliance programs in progress around the world.
So, have cap-and-trade markets contributed to a meaningful reduction in emissions in spite of their flaws? And are compliance markets the only way to address carbon emissions at scale?
Michael Azlen is the Founder and CEO of Cabon Cap Management LLP and Co-Portfolio Manager of the World Carbon Fund. On this episode of Reversing Climate Change, Michael joins Ross and guest cohost Aldyen Donnelly to explain how he got interested in carbon as an asset class and share his take on the benefits of compliance markets.
Aldyen offers insight on the two compliance market models, describing the problems associated with programs modeled after the SO2 Allowance Market—and why she prefers the framework of the Montreal Protocol.
Listen in to understand how Michael thinks about regulating voluntary carbon markets and why he is optimistic about the global growth in compliance markets despite their imperfections.
Resources
Become a paid subscriber of Reversing Climate Change
Follow the Reversing Climate Change podcast on LinkedIn
Climate-Crypto, COP26, and Carbon Accounting Rules on Reversing Climate Change S3EP1
Michael’s Paper on Carbon as an Emerging Asset Class
The US Acid Rain SO2 Allowance Market
Cross-State Air Pollution Rule
The Regional Greenhouse Gas Initiative
California’s Cap-and-Trade Program