International Emissions Trading Association (IETA)
IETA comprises members from across the carbon trading cycle.[1] Its mission includes establishing effective market-based trading systems for greenhouse gas emissions and removals that are environmentally robust, fair, open, efficient, accountable and consistent across national boundaries.[2]
Membership of board/executive committee: None[3]
- 2022 assessment outcome: Aligned
- 2021 assessment outcome: Aligned
Summary
Shell benefits from its membership of IETA through IETA’s role as a worldwide advocacy platform and source of information and expertise on carbon pricing and trading, a key area of advocacy for Shell. IETA is also a recognised observer to the UNFCCC.
We welcomed IETA’s 2022 discussion paper on Article 6 of the Paris Agreement that focused on how governments can implement Nationally Determined Contributions (NDCs) cooperatively and encourage private sector investment.[4] We believe that this paper can help advance the use of Article 6 among key stakeholders.
We have found IETA to be aligned with our climate and energy transition-related policy positions.
We will encourage IETA to:
- Support policies to ensure that nature-based solutions complement, and do not displace, efforts to avoid and reduce greenhouse gas emissions.
- Further support sectoral decarbonisation in aviation and marine by elaborating how carbon markets can help those sectors to decarbonise.
We will remain a member of IETA. We will continue to engage the association on climate and energy transition topics. We will continue to track alignment between IETA’s climate and energy transition-related positions and our own.
Further information
Click on the sections below to read more.
Paris Agreement and net-zero emissions
- IETA has stated support for the temperature goal of the Paris Agreement.[5] [6]
- In its 2022 statement about 2023 priorities, IETA stated “to deliver the Paris Agreement’s climate goals, IETA champions the power of high integrity markets to price carbon effectively for reaching net-zero targets. Carbon markets must broaden their reach and deepen their targets to deliver net zero emissions as soon as possible.”[7]
- IETA has stated support for the EU Green Deal’s target to achieve climate neutrality by 2050 and the EU’s Fit for 55 package.[8]
- IETA has stated support for California’s target to achieve carbon neutrality by 2045.[9]
- IETA is a recognised observer to the UNFCCC; it hosted the IETA BusinessHub at COP27 which included a number of side events that brought together businesses and policymakers.[10]
Carbon pricing
- IETA has stated support for putting a direct price on carbon emissions.[11] [12] IETA has stated: “To deliver the Paris Agreement’s climate goals, IETA champions the power of high integrity markets to price carbon effectively for reaching net-zero targets.”[13]
- IETA states that it focuses on the “transparency rules and accounting standards under Articles 5 and 6 of the Paris Agreement, the Carbon Offset and Reduction Scheme for International Aviation and voluntary markets”.[14]
- In 2022, IETA published an Article 6 Discussion Paper: How Governments Can Implement NDCs Cooperatively and Encourage Private Sector Investment, which aimed to “highlight important elements for the business sector to help maximise the impact and use of Article 6”.[15]
- In 2022, IETA held a number of events to bring together business and policymakers to discuss carbon markets, including at COP27, and the European Climate Summit.[16] [17] [18]
- IETA is a founding member of the Carbon Pricing Leadership Coalition, which works towards implementing carbon pricing around the world.[19] [20]
Energy efficiency
No position
Decarbonised hydrogen
No position
Natural ecosystems
- IETA has stated support for policies that encourage private investment in natural climate solutions that store carbon.[21] IETA’s Markets for Natural Climate Solutions initiative promotes increased inclusion of nature-based carbon crediting in carbon markets worldwide.[22] IETA “strongly recommends that companies prioritise interventions with strong co-benefits and that contribute to achieving other social and environmental goals, as laid down in the UN Sustainable Development Goals”.[23]
Carbon capture and storage
- IETA has stated that it envisions an increasing role for carbon capture and storage and other removal strategies.[24]
- In its 2022 publication of High-Level Criteria for Crediting Carbon Geostorage Activities, IETA stated proposed methodological components and safeguards to “underpin and guide crediting of carbon geostorage activities in carbon markets”.[25] [26]
Environmental, social and governance (ESG) standards and benchmarks, sustainable finance taxonomies
No position
Coal
No position
Electrification with renewable or low-carbon power
No position
Gases and methane
No position
Road transport: Passenger cars and vans
No position
Road transport: Heavy-duty vehicles
No position
Heavy industry decarbonisation
No position
Aviation
- In 2022, IETA stated that one of its priorities for 2023 would be to “help to implement the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) market”.[27]
Shipping
- In 2022, IETA stated that one of its priorities for 2023 would be to “support a carbon market for international shipping”.[28]
[1] https://www.ieta.org/About-IETA
[2] https://www.ieta.org/About-IETA
[3] During 2022, a Shell representative was a member of the IETA council, but stepped down from this role at end-2022. The IETA council is also known as the board of directors.
[4] https://www.ieta.org/resources/Resources/Position_Papers/June%202022%20IETA%20Article%206%20Discussion%20Paper.pdf
[5] https://www.ieta.org/Our-Mission
[6] https://www.ieta.org/resources/IETA-Council/Net%20Zero%20Guidance/IETA_Net_Zero_Climate_Ambition_1June2020.pdf
[7] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
[8] https://www.ieta.org/resources/EU/2050%20Future%20of%20Carbon%20Pricing/IETA%20EU%202050%20Net-Zero%20Position%20Paper.pdf
[9] https://www.ieta.org/resources/California/2020/IETA%20Net%20Zero%20California%20Paper-Nov2020.pdf
[10] https://www.ieta.org/resources/COP27/COP27%20IETA%20BusinessHUB%20Program%20Guide_F.pdf
[11] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
[12] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
[13] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
[14] https://www.ieta.org/Our-Mission
[15] https://www.ieta.org/resources/Resources/Position_Papers/June%202022%20IETA%20Article%206%20Discussion%20Paper.pdf
[16] https://www.ieta.org/resources/COP27/COP27%20IETA%20BusinessHUB%20Program%20Guide_F.pdf
[17] https://www.ieta.org/resources/Conferences_Events/2022/ECS/ECS_2022_Event_Guide_v3.pdf
[18] https://www.ieta.org/page-19096
[19] https://www.carbonpricingleadership.org/
[20] https://www.carbonpricingleadership.org/who-we-are/#:~:text=The%20Carbon%20Pricing%20Leadership%20Coalition%20%28CPLC%29%20is%20a,national%20and%20sub-national%20understanding%20of%20carbon%20pricing%20implementation
[21] https://www.ieta.org/page-18192/8185755
[22] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
[23] https://ncs.ieta.org/wp-content/uploads/2021/02/IETA-Land-Use-FINAL2.pdf
[24] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
[25] https://www.ieta.org/page-18192/13014902
[26] https://www.ieta.org/resources/IETA%20Initiatives/CCS%20Criteria/High%20Level%20Criteria%20for%20crediting%20geostorage%20activities%20v1.0.pdf
[27] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
[28] https://www.ieta.org/resources/Secretariat/IETA%20Priorities%202023%20AGM%20APPROVED.pdf
