Emissions Trading Schemes and Their Linking: Challenges and Opportunities in Asia and the Pacific
Robust policies on emissions trading systems (ETS) can be important tools in reducing greenhouse gas emissions in a cost-effective manner, as well as support the mobilization of finance together with deployment of innovative technologies.
Asia and the Pacific has achieved rapid economic expansion in the recent years and has become a major source of greenhouse gas (GHG) emissions. With more than half of the world’s population and high rates of economic growth, the region is especially vulnerable to the effects of climate change and therefore must play its part in cutting GHG emissions.
There are currently 17 emissions trading systems (ETS) in place in four continents and account for nearly 40% of global gross domestic product. In Asia and the Pacific region, there are 11 systems operating, with more being planned. The growing wealth of experience on ETS can be valuable to support DMCs that are planning and designing new systems of their own. This knowledge product summarizes some of the most significant learning experiences to date and discusses some of the solutions to alleviate challenges that have been faced. It also examines the possibilities for future linked carbon markets in the region.
- Context: Carbon Pricing Instruments for Developing Member Countries
- Existing Emissions Trading Systems—Theory and Practice
- Key Challenges and Lessons Learned from Existing Emissions Trading Systems
- Emissions Trading Systems in Developing Member Countries
- Key Challenges Faced by Developing Member Countries and a Blueprint for the Future
- Linking: Key Challenges and What Can Be Learned from International Experience