The European Emissions Trading System (EU ETS) constitutes a central European climate policy instrument. Since its start of operation in 2005, the carbon market has grown considerably in terms of trading volume and also with regard to the various players being active. This report is part of the...

The effectiveness of carbon pricing as a market-based policy tool with economy-wide transformation potential has increasingly rendered it the instrument of choice among policy makers responding to challenges posed by climate change. However, the potential for jurisdictions to introduce carbon...

Multilateral cooperation initiatives (or “climate clubs”) can generate some of the additional action that is needed to achieve the goals agreed in the Paris Agreement. An analysis of the state of collaboration in the four policy areas energy transition, synthetic fuels, food systems and...

A broad consensus exists that carbon pricing is key for cost-effective emission reductions and that it must play a major role in driving the transition to a climate-neutral economy. However, despite significant progress in wider climate policy uptake in recent years, the vast majority of...

This report analyses the influence of the design features of China’s pilot emissions trading systems (ETS) in the Province of Hubei and the Municipal City of Shenzhen and the development of the electricity markets on the quality of the carbon price signal. Based on publicly available data and...

This report provides an overview of the main outputs of the research project Influence of market structures and market regulation on the carbon market (2018-2021). The aim of the project, commissioned by the German Environment Agency, was to gain a better understanding of the impact of market...

In addition to carbon dioxide, air traffic operation affects the climate through other emissions and atmospheric processes, such as the formation of ozone and contrail cirrus. The climate impact of these non-CO2 effects is strongly dependent on the emission location (in particular cruise...

Carbon pricing at appropriate levels is critical in the response to climate change, but currently only a fifth of global emissions are priced. Successful carbon pricing in Asia can help jurisdictions in the region achieve their climate targets cost-effectively, spur investments into low-carbon...

Climate protection scenarios are a key part of long-term climate policy planning, which has been given a further boost by the Paris Agreement. The modelling performed in such scenarios informs the development of 2050 national climate strategies—which themselves serve as roadmaps for the...

The report analyzes, by looking back at existing compliance systems in the EU, Alberta, Australia, Colombia and Japan, the conditions under which offsets can add value to the compliance system without undermining its environmental integrity. The compliance system’s climate ambition as well as...