The International Carbon Action Partnership’s (ICAP) Status Report 2017 provides a testament to the evolution of emissions trading from textbook assumptions to the real world. With the launch of China’s national emissions trading system (ETS) later this year, ETS will operate in economies generating close to half of the world’s GDP and covering more than 15 per cent of global emissions. The ICAP Status Report takes stock of the latest developments in emissions trading, providing detailed factsheets on all systems under consideration or operating worldwide, as well as highlighting major trends and areas of policy debate. This year’s report focuses on three major themes: emissions trading in emerging economies, market stability and international cooperation.
As systems continue to adapt to new challenges and as new systems emerge, international dialogue and cooperation will be key to the success of emissions trading. Such networks are critical on all levels. As Akiko Miura from the Tokyo Metropolitan Government outlines, Tokyo has been actively sharing its expertise as the world’s first city-wide ETS with other jurisdictions in Asia, such as Korea, China and Malaysia to promote best practices and ETS readiness. More broadly, Nicolas Muller of the United Nations Climate Change Secretariat demonstrates how article 6 of the Paris Agreement gives countries the option to work together to achieve the targets in their Nationally Determined Contributions (NDCs), for instance, by linking their ETSs.
In support of these processes, ICAP continues to bring together policymakers from around the world to exchange on experiences and lessons learned regarding ETS. ICAP’s technical dialogue, focusing on specific ETS issues, such as linking and establishing a long-term carbon price, is an opportunity for policymakers to exchange and develop best practices. ICAP also focuses on capacity building through its training courses that help policymakers from emerging and developing economies learn the building blocks of emissions trading and the role it can play in their jurisdiction. More broadly, ICAP also functions as an emissions trading knowledge hub through products like the interactive ETS map.