Publications

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).

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.

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 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.

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.

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. 

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

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.