Publications

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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Banking and borrowing are key levers that enable a degree of temporal flexibility within emissions trading system. Understand how they work, risks associated with each and restrictions that may be imposed, and which jurisdictions allow either mechanism.

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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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Emissions trading systems operate across five continents. From how an ETS sets a clear price on carbon, how it can suit various economic and political contexts, as a source of revenues and additional benefits, understand just what makes emissions trading such an attractive policy instrument.

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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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Check out the 2023 ICAP Status Report with the latest developments in emissions trading around the world.

The report includes:
🔹 comprehensive snapshot of the latest ETS developments
🔹 up-to-date factsheets on all systems
🔹 infographics that visualize the systems' characteristics
🔹 in-depth articles from policymakers and carbon market experts

This report explores how CCS is treated in different ETSs around the world; if and how ETSs could play a role in incentivizing the development and deployment of CCS applications; and the challenges and opportunities in developing the required regulation in this context.

As market-based instruments, emissions trading systems are inherently flexible, as entities can decide to reduce their own emissions or buy emissions allowances from the market. Carbon offsets (or simply ‘offsets’) are a tool to further increase flexibility in reaching climate targets under ETSs, as they offer sectoral and geographical flexibility for jurisdictions to reduce greenhouse gas emissions outside of the scope of their ETS. This report …