(This post first appeared on EDF Climate Talks.)
While Washington is stuck in gridlock, other jurisdictions around the world are moving forward on climate policy.
Market-based approaches to cutting carbon are in place in jurisdictions accounting for nearly 10% of the world’s population. Above: areas shaded blue have emissions trading programs that are already operating; areas in green have programs that are launching or being considered.
Market-based approaches to cutting carbon are already in place in jurisdictions accounting for nearly 10% of the world’s population and more than a third of its GDP. Many more jurisdictions are either moving ahead with market-based measures, or actively considering them.
As interest grows around the world, policymakers are increasingly seeking information about the range of existing and proposed initiatives.
In response, EDF has partnered with the International Emissions Trading Association (IETA), a trade association that represents businesses involved in carbon trading and climate finance, to launch The World's Carbon Markets: A case study guide to emissions trading.
The online resource provides detailed information about key design elements and unique features of 18 emissions trading programs that are operating or launching around the world.
EDF has also put together a quick reference chart that makes comparing the 18 programs even faster and easier.
Growing interest in emissions trading
Market-based policies are a proven way to limit carbon pollution and channel capital and innovation into clean energy, helping to avert the catastrophic consequences of climate change.
While emissions trading programs around the world, like the ones we have looked at in detail, vary in their features, they all share the key insight that well-designed markets can be a powerful tool in achieving environmental and economic progress.
The countries, states, provinces and cities highlighted in this report, which are moving ahead with strong action on climate change, constitute a vital and dynamic world of “bottom-up” actions that complement multilateral efforts such as the ongoing United Nations climate negotiations. Jurisdictions considering market-based approaches can use this new resource to learn from their growing number of peers already headed in that direction.