Publications

This report delves deep into the power sector value chain dynamics, demonstrating how well-designed carbon pricing instruments can be instrumental in helping countries reach their decarbonization goals. Focusing on how decisions are made in diverse power sector models in several developing countries, this report establishes that the CPI must be carefully positioned at the right regulation point in the power sector’s value chain—rather than merely …

Check out the 2024 ICAP Status Report with the latest developments in emissions trading around the world.

The report includes:
🔹 State and outlook of emissions trading worldwide
🔹 Detailed factsheets on every system in operation, under development, and under consideration
🔹 Infographics that visualize the systems' characteristics

This paper explores how the Article 6.2 rules agreed at COP26 could be applied to an international link of two ETSs, including how to account for the changes in emissions, addressing the challenges in determining when changes in emissions occur within an ETS, and options to generate finance for adaptation and “net” mitigation from the link.

Understand how the use of offset credits, which represent emissions reductions from projects outside the scope of an ETS, provides an additional source of low-cost abatement options and flexibility for covered entities, issues of environmental integrity, and approaches taken by systems around the world.

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Understand the core concept of emissions trading as an instrument to reduce greenhouse gas emissions – from the cap, to how allowances are distributed, who is regulated, how companies manage emissions, and how to run an ETS effectively. 

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Auctioning allowances in an emissions trading system generates revenues that can be used for various purposes. Learn how much jurisdictions receive in revenues, and the different ways it can be used – from supporting disadvantaged groups, funding further climate action, or contributing to the public budget.

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In an ETS, covered entities may receive allowances for free from the government or buy them in auctions. Learn about how governments decide to distribute allowances, why allocation matters, the pros and cons of each allocation method, how free allocation can work, and the approaches taken by systems around the world.

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Learn how linking emissions trading systems creates a larger carbon market, which can provide the participating jurisdictions with more cost-efficient options to reduce their emissions. Understand the different types of linking, why jurisdictions might link their systems, and the links in place around the world.

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ETS works by capping the total emissions allowed within the system. With a carbon tax, the government sets a tax rate and entities covered by the tax must pay this amount for every tonne they emit. Understand what these carbon pricing instruments have in common, how they differ, and which contexts might suit one over the other.

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Emissions trading is spreading around the world as a key instrument to cost effectively decarbonize economies. What kinds of sectors are covered? How do systems around the world differ from each other? How have systems matured over time? Understand the dynamism and resilience of ETS.

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