Emissions trading is fast becoming the world’s most popular climate policy instrument, with 17 systems in operation and many more in the pipeline. This year has seen major announcements of new systems in China, Ontario and Ukraine, as well as the start of the Republic of Korea’s national system. The release of the Clean Power Plan has also stimulated interest in emissions trading across the United States.

But how exactly does this policy instrument work?

Check out the ICAP ETS Briefs to get up to speed on the basics of emissions trading.