Editor: Hanna Stenegren

Supported by Fores

Year: 2018

Carbon pricing initiatives around the world have seen continued progress and 2018 is a critical year for implementing international carbon pricing mechanism. To date, 51 carbon pricing  initiatives, including 25 emissions trading systems, have been implemented or are scheduled for implementation. These cover about 20 percent of global greenhouse gas emissions. When the EU Emissions Trading System, EU ETS, was established in 2005 it was the first international trading system for CO2 emissions in the world, and until China launched its national system in late 2017, the biggest. Ever since the start there has been ongoing discussion on how to improve the system and it has seen several reforms. It has come to stand as an example for others to observe and in some cases follow. A functioning EU ETS is therefore not only important for Europe, but important for carbon pricing all over the world.

This book puts emissions trading into perspective, in the EU and the world, to the interested but not necessarily specialist reader. It looks at the latest revision of the EU ETS and what  improvements are needed for the future. It also looks at other emissions trading systems, what Europe can learn from them, as well as the outlook for linking systems around the world, and the role of emissions trading in the Paris Agreement. It is hoped to inspire further interest in emissions trading and market-based solutions to climate change.