First of all, good afternoon, everybody. Very grateful to SciencesPo for inviting me for this talk, and happy to see so many people interested. So I assume that if you bothered showing up, you know what carbon pricing is, so I don't think we'll go through the basics. But I should like to recall a few elements of politics without much difficulty, then follow the rest of our debate in my corporation, [inaudible] First of all, carbon pricing is essential if we want to regulate carbon in the economy. [inaudible] So if you need, you can do other things, but the massive regulation would require regularly in that recovery in the economy. Without the market instrument for supplying, it's probably unattainable in our society. The problem would cause more damage in [inaudible] Some form of carbon pricing is necessary if you want to regulate the amount of carbon in [inaudible] Now, the different forms of efficient carbon pricing. Carbon tax can be perfectly efficient. The choices of the instrument have more to do with historical, regional, institutional, political circumstances than in absolute abstract preference for one instrument [inaudible] The important thing you need a market based instrument. As we all know, taxation is an instrument in terms of market [inaudible] Why has Europe chosen an issue trade, caplet trade? Again, I go back to back, historical, legal, institutional, political circumstances. In [inaudible] we require with [inaudible] to decide taxation European level, whereas to adjust the institutional [inaudible] It's a fundamental adjustments of member states to pull their physical soil. This is only one debating manifestations for that. It's an issue then we will have to address some of these things in a way of that. It is going to be a slow premises and complicated one. Though, the alternative [inaudible] was obviously to create a pure market industry capital trade. Now, the design of the capital trade system, again, does not respond to abstract action criteria. There isn't one ideal design. The design that will base on the market would be half. That will be base on the market in the UK. But there are some key features [inaudible] A carbon pricing system that does not include the entire [inaudible] in this whole plan. In a developed, sophisticated, industrial economy, a carbon pricing making does not address the bulk coming as a production. It's an inefficient part. But we'll come back to gather of that price. That's how the European emission trading system was for. It's a system, which is what I'm here to talk. If you consider the developing of the market from scratch in the following years, isn't an easy task, and why should other expected a miracle solutions. In [inaudible] EGS suffer from two major shortcomings. Not necessarily on the policymakers. First of all, the economic crisis. Systems [inaudible] 2005. 2008 the major economy crisis that we will remember. Sharp reduction in economic activity. Obviously, the [inaudible] of the issues. Not ideal to regulate [inaudible] Secondly, and that is of the policymakers responsibility. We found [inaudible] that we could have a world market in carbon credits. The mechanism created by a [inaudible] protocol [inaudible] mechanism. The idea that you could, even in countries did not have a proper carbon pricing and may not have a comprehensive policy on carbon emissions. You could create pockets or version. All sorts of gratitude where projects may be well financed by foreign donors or by foreign investors who would reduce emissions in that spot asks for a bad business as usual with help that we need in our business. This would be [inaudible] . This would be used in [inaudible] the only real sizable capital market. What do you mean the only real? If you traded in New Zealand, for instance. New Zealand market is [inaudible] as compared with [inaudible] That was an illusion because, the CBM trading is a trade with all sort of problems, which we haven't been able to solve yet. Environmental intent. Where this project really reducing emissions. Additionally, were there reducing emission as compared with business as usual with the authorities, and improve it. [inaudible] . How often can you sell this reduction of emissions? How real are the stability? I asked you the gory details, but the most common the tradition, always [inaudible] The combination of these two created a massive drop in the European carbon market, help aided and abetted by the fact that if you have a carbon market which operates all on those in isolation, and your competitors are not [inaudible] same process, you can correct services. Correction making can be adopt to mostly the fee allowances. That greatly reduces the effectiveness of the system. In sparing innovation, in sparing emission reductions, in sparing inefficiency, but at the same time, if the prices would industrialized the country [inaudible] The combination will be [inaudible] We created a market which was, to put it politely, excessive [inaudible] The original calculation of EPS, we're counting on a price of about 30 Euros [inaudible] When I think it over, we all says the price was about 5 Euros. I got to be lower. At the same time, I trained [inaudible] We had deeply reformed the system, the Phase 4 VPS, which will fully enter into force in 2021. First of all, kicked out the excess liquidity in the form of interventional credits. Second, we created a market stability reserve, which entered into operation this year, which was designed to absorb progressively excess liquidity from the market and be available to re-inject liquidity if the timelines weren't too far in the wrong direction. Even just the anticipation of this market correction mechanism has prompted the spike in carbon pricing or maybe in traveling around 20 plus up to 25, 26 years [inaudible] All that started April last year. So very fast development, market discounting. The entry of course was fix for innovation. At the same, Phase 4 tightens the conditions for the issuance of free analysis. Progressively, gently I should say, observed a problem of accessibility because our company [inaudible] a massive war chest of emissions, which they have accumulated and didn't really need it. But you're beginning to see [inaudible] trouble. You begin to see corporation are under pressure. In spite of all these difficulties, EGS has produced a massive improvement in guaranteeing efficiency of European industry. The order of 40 percent. I know these act common in technologies. We're talking about technological improvements in production process. Very often came out new invention. We're talking about radical changes in interaction form. So are we happy? Reasonably so [inaudible] Now, the problem remains that carbon pricing eventually in the market will continue to be the same performance. Not to be [inaudible] and the debate on how exactly carbon [inaudible] works. How much can we afford to compensate. Whether the member states can, on top of that, compensate for indirect cost. In other words, energy costs, continues to be a very difficult, a very heated debate. It has even a rise where the state of litigation in the past mapping states. So far we have the locks is in the case. I'm sure that there is plenty of lawyers arming themselves to take our support when Phase 4 finally hasn't worked legally. I think that the symptoms are clearly in the air. So isolation remains an issue. My last point is that if we want to address the global challenge of climate change, we need to spread the appropriate instruments for addressing the problem. Some form of effective carbon pricing is in excess. Let's say it's not a panacea. It's not a one size fits all solution. Even in an ideal world, we would love to have an effective, workable, international health markets. But we don't expect that to happen naturally. At the same time, we spend the [inaudible] resources fostering carbon pricing of the [inaudible] Whether our partners choose to do emission trading or whether they choose to do carbon taxes or a combination thereof, it's not irrelevant, it's [inaudible] and it's still formulated. We had a number of international processes that we run what's the required of corporation with policy issues who have a carbon pricing system or unwilling to explore one. We need [inaudible] insurance, and we' ll have a discussion first in an open sector, and may private sector for policy [inaudible] The last thing I would say is that we're beginning to see very related [inaudible] style. I'll give you two examples. New Zealand who has a real problem with liquidity in relational market, and the market where most of the emissions are industrial or agriculture. So much harder to handle. That day [inaudible] shows are on the side of environment than a table. We explored European [inaudible] they've excluded international credits. A better price. Our market continues to be perfectly liquid without the financial credit, we'd zero some problem, yet the political [inaudible] first. Second example to why as to salute in terms of political party scan. Where Tribek has an effective carbon pricing system. A few other policies and the carbon tax based in carbon pricing system, but qualities are growing up and down. Tribek has joined up from [inaudible] in California, from [inaudible] join the system, and after the last election, we moved on with making entire froze the system and announce it would be doubled. The Canadian government has been very clear when the new [inaudible] two functions. Everybody in Canada has to have a minimum form of carbon pricing. It's for waste of competence. It's the provinces going to choose now, and if the provinces choose not to, the federal government will step in. That happens which an electoral year shows that not all will agree with that. So if we salute the action viral marketing trends. [inaudible] China. China has just launched last year it's Emission Trading System. It's imperfect. It's incomplete. Hasn't really started. They would probably start next year. It progress only the average generation sector and it's based on benchmarks averages rather than a proper carbon trade system. Yet if it works, either with this features, its ability to abate emission will surpass that of the entire inorganic system. That is the scale of the emission [inaudible] So the fact that the Chinese are not only aware or willing to operate in that direction, is a massive improvement in world's of emission. Insufficient it may be, but if you think that it took 12 years for Europe to set up a system to somehow begin to work the way it was is even I think the difficulty of China for taking their time being what the world and we are investing massively in cooperation with China to develop and share experiences, to enable them to make their [inaudible] So in conclusion, carbon pricing is essential. It's not apparent [inaudible] it's not the only instrument, but it's difficult to perceive an effective system of abating emissions without some formal type of pricing, whether you chose capital trade, which you starts in the combination thereof. It is more a convincing choice than in principle one. The one thing you cannot do is to mix-and-match with elements. If you have a market, you need to make Europe as a market. If you use taxation, you have to make sure that taxation fosters a market which is under resources. What asset and resources we can make. [inaudible] Thank you.