Only thirteen states have adopted an emissions trading system in the United States. Eleven states in the northeast (Connecticut, Maine, Delaware, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont) are part of the Regional Greenhouse Gas Initiative (RGGI), which is a cap-and-trade program. California also has a cap-and-trade program, while...
The UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the European Union Emissions Trading Scheme (EU ETS) on 1 January 2021. Phase 1 runs between 2021 – 2025 and 2 from 2026 – 2030. The initial cap for the UK ETS in 2021 was 156 million allowances (covering only a quarter of UK...
An Emission Trading System is of considerable significance because of the environmental and economic advantages it offers, such as; Carbon Emission Reduction: It facilitates emissions reduction by implementing measures to control carbon emissions. Reducing emission limits incentivizes businesses to invest in greener technologies. Economic Benefits: Companies can buy and sell within the carbon market while...
Currently, there are two complementary carbon emissions trading systems in Spain: the mandatory regulated market and the voluntary market. They are very different; their only similarity is that they auction the same thing: one ton of carbon equivalent (tCO₂e), with significant divergences in their objectives and operation. Undoubtedly, the mandatory regulated market has been the...
Fig 1: Carbon Emissions Trading System Structure (A possible market structure is shown above with a nine-step process from project implementation to using the tax offset.)There are several planned or ongoing voluntary carbon offset systems in South Africa: They allow companies to mitigate their financial liability regarding the proposed carbon tax. Emission Carbon Tax...
Saudi Arabia is working on developing a carbon trading market by creating carbon credits that companies can buy to offset their emissions.In October 2023, Saudi Arabia announced at the United Nations MENA Climate Week in Riyadh that it will launch in early 2024 the Kingdom’s Greenhouse Gas Crediting and Offsetting Mechanism (GCOM) “to incentivize the...
In Nigeria’s pursuit of sustainable development and climate action, the federal government, in collaboration with and support of the Africa Carbon Market Initiative (ACMI), aims to tap into the country’s carbon market, estimated at a value of $2.5 billion. This initiative marks a significant step towards environmental stewardship and economic growth.The Intergovernmental Committee on Carbon...
Mexico is a valuable case study in developing an Emissions Trading System (ETS) for a middle-income nation. While a full-fledged program isn’t operational yet, the pilot program offers insights into potential benefits and challenges. By building on these lessons and addressing future considerations, Mexico can potentially establish a successful ETS that promotes cost-effective emission reductions...
The EU Emissions Trading System (EU ETS) is a strategy developed by the European Union to efficiently reduce greenhouse gas emissions, representing one of the primary climate-change policies of the EU. Operating across 31 countries in Europe, the scheme was adopted in 2005, and it regulates emissions from over 10,000 energy-intensive installations, including combustion and...
Indonesia launched its first carbon emissions trading market in September 2023. The market allows businesses and financial institutions to offset emissions while supporting carbon reduction projects. Under the scheme, corporations that exceed their carbon quotas can purchase carbon credits from industries that emit pollution below a government-set limit or from renewable power plants. Over-emitting businesses...
