Linking emissions trading schemes is the bottom-up approach to creating a global carbon market. It entails political compromise and a careful assessment of the trade-off between its advantages and disadvantage.
This article points out that the main benefits of linking are the reduction of the aggregate compliance and transactions costs, the reduction of the competitive distortions and the increase of market liquidity. On the other hand, the article identifies also drawbacks in this process: differences in certain design elements can challenge the environmental policy objectives through free-riding and emissions leakage. For all these reasons, a linking project requires solutions to harmonize those design elements which pose barriers to an effective linkage.
This publication (the 10th edition of Greenhouse Gas Market) brings together carbon market professionals, policymakers, academics and NGOs to provide in-depth analysis and perspective on the main issues affecting carbon policy worldwide.
As the world moves on from the climate agreement negotiated in Paris, attention is turning from the identification of emissions reduction trajectories—in the form of Nationally Determined Contributions (NDCs)—to crucial questions about how these emissions reductions are to be delivered and report
This report maps existing and emerging carbon pricing initiatives around the world. It does not provide a quantitative, transaction-based analysis of the international carbon market since current market conditions invalidate any attempt to undertake such an analysis.
Northeast Asia Carbon Markets and Trade Connections published by Asia Society Policy Institute (ASPI) in collaboration with ICTSD focuses on carbon pricing and the linking of carbon pricing systems as a potential cata