The ICAP Status Report provides a comprehensive snapshot of the latest developments in emissions trading systems (ETS) in operation, scheduled and under consideration around the world. The 6th edition of ICAP’s annual report features up-to-date factsheets alongside infographics that visualize the major trends and characteristics of ETS around the globe. In-depth articles from policymakers and carbon market experts also provide insights into the latest developments in their jurisdictions. This year's report features articles from the Republic of Korea, Mexico and China, as well as an exclusive interview with leading ETS policymakers in California and Québec.
The report finds that as jurisdictions look to implement domestic climate policies, carbon markets are evolving to fill a central role in the transition to a low-carbon economy, with 20 systems now operating across four continents. Over the past few years, many of the pioneering systems worldwide have undergone sweeping policy reforms to strengthen their policy and prepare for the post-2020 era. As these changes start to kick in, we have seen markets react with significant price effects. Moreover, several major systems are now implementing ambitious caps out to 2030. In so doing, policymakers are finding the balance between ambitious caps and protecting sectors genuinely at risk of carbon leakage. A range of market stability instruments are also coming into play to better guard markets against unforeseen developments.
The report also explores the new generation of ETS: with six new systems scheduled and another twelve formally under consideration, it is clear that cap-and trade will play an increasingly important role in the worldwide response to the climate challenge. Download the full report here and the executive summary here.