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...

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...

The European Commission’s (EC) proposed Carbon Border Adjustment Mechanism (CBAM) is meant to mirror the carbon price of the EU Emissions Trading System (EU ETS) for several imported goods. While the CBAM can rely on certain aspects of the EU ETS regarding its costs and compliance obligations,...

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 Cap and Trade (CaT) system and the electricity market in California along two main questions: How do CaT design features affect the environmental effectiveness of the system and the quality of the carbon price signal? How do electricity market design...

This report analyses the interaction of the European Emissions Trading System (EU ETS)and the German and Polish electricity markets along two main questions: How do EU ETS design features affect the environmental effectiveness of the system and the quality of the carbon price signal? How do...

This report analyses the interaction of the pilot Emissions Trading System (ETS) and the electricity market in Mexico. It does so along two main questions: a) How do ETS design features affect the environmental effectiveness of the system and the quality of the carbon price signal? b) How do...

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...