IEA at COP27: The role of carbon pricing and electricity market reform in advancing power sector decarbonisation

Egypt Time, GMT +2: 12:30 PM-1:30 PM

Achieving net zero goals and ambitious decarbonisation targets for the power sector will require a basket of policy instruments. Carbon pricing can be a powerful instrument to drive power sector decarbonisations, as it can optimise decisions on power dispatch, investment and fleet retirement and retrofit, and change electricity prices and consumption patterns. However, the effect of carbon pricing on these dimensions will vary from one country to another, as power market structures differ. In many countries, power markets are highly regulated.

This session aims to explore how carbon pricing could function under different power market structures and how it can be designed to enhance its effectiveness in regulated markets. It also aims to explore how carbon pricing can interact with broader power sector reforms. Government stakeholders and experts from South Africa and other emerging economies will discuss the state of carbon pricing development and power sector reform in their region, and share experiences and good practice on how carbon pricing has been implemented along power sector reforms. The session aims to explore collaboration and foster knowledge exchange among stakeholders.