Publications

Benchmarking can protect against carbon leakage while setting incentives to reduce emissions, but their design entails complex trade-offs. This paper explores benchmark-based industrial allocation design and experiences, using insights from existing ETSs, and their implications for abatement and low-carbon investment incentives.

Check out the 2022 ICAP Status Report with the latest developments in emissions trading around the world.
 

The report includes:
- Insights from policymakers and carbon market experts
- Infographics
- Factsheets on each system in operation, under development and under consideration

Now available in Chinese: Updated Handbook for Emissions Trading Design and Implementation (2nd Edition).

ICAP and the World Bank jointly published a paper on the governance of emissions trading systems.

Given factors such as constraints in free allocation policy for some ETS jurisdictions, other ways of addressing concerns about carbon leakage and competitiveness are likely to continue attracting interest, and these approaches may increasingly focus on cross-border trade. California and New Zealand offer practical experiences with such policies that may be instructive for other jurisdictions navigating border-related climate measures.

An overview of the steps that jurisdictions in Latin America have taken to plan, design and implement carbon pricing. Available in English, Spanish and Portuguese.

ICAP ETS Briefs are designed for businesses, media, students, and other stakeholders interested in climate change and emissions trading. On just two pages, the briefs help you get up to speed on how emissions trading works, its benefits, as well as a snapshot of systems currently operating worldwide.

Los resúmenes del ICAP sobre el RCDE están pensados para empresas, medios de comunicación, estudiantes y otras partes interesadas en el cambio climático y el comercio de emisiones. En sólo dos páginas, los resúmenes le ayudarán a ponerse al día sobre el funcionamiento del comercio de derechos de emisión, sus beneficios y una visión general de los sistemas que funcionan actualmente en todo el mundo.

Os ICAP ETS Briefs são concebidos para empresas, meios de comunicação, estudantes, e outros interessados nas alterações climáticas e no comércio de emissões. Em apenas duas páginas, os Briefs ajudam-no a manter-se a par de como funciona o comércio de emissões, dos seus benefícios, bem como um instantâneo dos sistemas actualmente em funcionamento em todo o mundo.

This paper seeks to understand the challenges that net zero emission targets could present for the operation of emissions trading systems (ETSs) and develops a series of models for the possible interactions between ETSs and removal units from negative emissions technologies (NETs).

The updated Handbook has drawn from recent learnings gained over the last five years as jurisdictions around the world have gathered experience in designing, implementing and refining ETSs.

This report covers the worldwide developments in ETS over the year, with key figures, infographics, and detailed factsheets on all systems globally. In addition, a series of articles from policymakers and experts explore the theme of ETS resilience and the important role of carbon markets in achieving a net-zero compatible economic recovery. 

The report includes:
- Insights from policymakers and carbon market experts
- Infographics
- Factsheets …

Current estimates suggest achieving net-zero emissions will require much higher carbon prices. What challenges could arise? A brief on the possible policy options to address them.

A review of current efforts to address carbon leakage, assess the risk of carbon leakage, and policies to strengthen decarbonization efforts in light of ongoing leakage vulnerability and the push to achieve net-zero emissions.

A technical note on carbon market simulations as a means to allow stakeholders to participate in a fictitious process of designing or participating in an ETS.

The ICAP Status Report 2020 presents developments in emissions trading around the world.

The report includes:

• Factsheets on each system in operation, under development and under consideration
• Infographics
• Insights from international emissions trading expert

This paper explores different market stability mechanisms (MSMs) used in ETSs around the world to balance policy predictability with the need for flexibility to respond to changing circumstances or unexpected shocks.

This report examines options for simplification in both the design phase and specific areas of operation, outlining approaches, experiences, and lessons from existing systems to date.

This report examines how different emissions trading systems (ETSs) manage and distribute revenue generated from auctioning allowances. Directing revenue from auctions toward projects that generate tangible benefits is a key way to increase the political and social acceptability of an ETS.

Check out the 2019 ICAP Status Report with the latest developments in emissions trading around the world.

The report includes:
- Insights from international emissions trading experts
- Infographics
- Factsheets on each system in operation and under consideration

The paper looks at internationally linked emissions trading systems, examining four approaches to account for the flow of allowances across international borders under the Paris Agreement. The findings can inform the ongoing negotiations on the Paris Rulebook, as well as bilateral agreements between jurisdictions. 

How to best link emissions trading systems? This guide provides policymakers with a step-by-step for the whole process. Complete with practical experiences, how to avoid possible pitfalls, stakeholder perspectives, and much more.

An accessible resource that summarizes the main conceptual and theoretical arguments for ETS, supported by a consolidated body of up-to-date empirical evidence.

The main arguments for ETS, as supported by empirical evidence. Accompanying the paper is a spreadsheet that provides easy access to the paper’s key references.

In theory, ETS offers a cost effective tool to achieve emission reduction targets, but in practice, electricity sector regulation interacts with emissions trading in ways that may prevent or change how participants respond to the allowance price. This report provides a conceptual framework to understand this interaction.

Check out the 2018 ICAP Status Report with the latest developments in emissions trading around the world.

The report includes:
- Insights from international emissions trading experts
- Infographics
- Factsheets on each system in operation and under consideration

How can emissions trading provide a carbon price signal that incentivizes cost-effective emissions abatement over the long term? A framework to understand dynamic cost effectiveness under an ETS.

The ICAP Status Report 2017 presents developments in emissions trading around the world.

The report includes:

• Factsheets on each system in operation and under consideration
• Infographics
• Insights from international emissions trading experts

The Handbook synthesizes input from over 100 practitioners and experts from four continents, reflecting both the latest theoretical insights and best practices from existing ETS.

The ICAP Status Report 2016 presents developments in emissions trading around the world.

The report includes:
- Factsheets on each system in operation and under consideration
- Infographics
- Insights from international emissions trading experts

Check out all the latest trends and developments in emissions trading systems worldwide in ICAP's Status Report 2015.

Highlights include:

• Detailed factsheets on each system
• Infographics
• Articles from international emissions trading experts 

A summary of key insights from the literature with a focus on the technical dimensions of linking ETS.

The report presents insights about the status and working of emissions trading around the world in 2014.

Key elements for emissions trading market oversight: an overview, including insights on institutional and legal requirements and standards.