ICAP & World Bank Paper: Governance of Emissions Trading Systems

ICAP and the World Bank jointly published a paper on the governance of emissions trading systems (ETSs).  While emissions trading continues to expand as a flexible policy response to climate change, its implementation can raise complex governance challenges and calls for robust institutional, regulatory and procedural frameworks. Unlike aspects of technical design and implementation, the governance of ETS has found less extensive treatment in the available knowledge base. Existing systems can offer valuable insights into the successful governance of emissions trading, from the initial establishment and routine operation of an ETS to the review of its performance and the management of change. This new ICAP-World Bank report draws on such experiences to provide guidance on the governance of an ETS across all stages of its evolution.