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...
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
- 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.