ICAP Webinar: Foundations of Emissions Trading Systems
On 21 July 2026, ICAP hosted an introductory webinar on emissions trading. The session introduced key carbon pricing concepts, explaining how emissions trading systems work, and presented the main steps involved in designing and implementing an ETS. The webinar was aimed at policymakers, technical experts and other stakeholders working on, or interested in, carbon pricing and emissions trading. This preparatory learning opportunity was also part of the lead-up to the 2026 Regional ETS Summer School in Bangkok.
Online via Microsoft Teams
Emissions trading systems (ETS) are increasingly being considered and developed across Asia as countries look for cost-effective ways to meet their climate targets and support low-carbon development. This ICAP webinar provided an accessible introduction to ETS design and implementation.
The session introduced the basic theory of market-based instruments, differentiating between carbon taxes, compliance emissions trading systems, and voluntary carbon market approaches. Via presentations and the interactive exercise, “In the Trading Pit”, participants learned how an ETS works, how they are designed and how they reduce overall compliance costs compared with command-and-control approaches.
The webinar presented the “10 Steps” of ETS design and implementation from the ICAP ETS Handbook, providing participants with a structured overview of the main phases of building an ETS, as well as a shared understanding of the concepts and terminology.
The agenda included:
- Welcome and Introduction
- Presentation: Emissions Trading – Concept and Theory
Michael Mehling (MIT) and Jonathan Gardiner (Ecologic Institute) - Break
- Interactive Exercise: “In the Trading Pit”
Michael Mehling (MIT) and Aaron Best (Ecologic Institute) - Presentation: 10 Steps of ETS Design and Implementation
Marissa Santikarn (Independent/EDF)
The webinar is part of ICAP’s ETS training and capacity building activities, implemented with support from the European Commission and by the implementing partners Ecologic Institute, Get2C and EDF. It also served as a preparatory session in the lead-up to the 2026 Regional ETS Summer School in Bangkok.
