(Global) Carbon Markets and Carbon Pricing Mechanisms
Carbon Markets, and other carbon pricing mechanisms, are increasingly being implemented all over the world to help tackle climate change and finance a sustainable transition.
Over a decade ago, when the emission trading system in the European Union (EU ETS) launched its pilot programme, carbon markets and other carbon pricing mechanisms were rather the exeption in policies used to help tackle climate change. In recent years however, an increasing number of countries all over the world have launched their own ETS system, or started adopting some other form of carbon pricing mechanisms, such as carbon taxes. In light of the 2015 Paris Agreement, many countries have pledged to incorporate or explore carbon pricing mechanisms to help tackle climate change.
Seeing that carbon pricing mechanisms are increasing becoming a core element in countries' climate change toolkits, ERCST will follow and research with great interest these development taking place all over the world, and organise events to inform, and foster debate among, policymakers and stakeholders. Not only do these mechanisms, especially carbon markets, provide a cost-effective way to decrease emissions, they also allow for the possibility to help further finance the transition to a low-carbon economy and society. Indeed, the contribution of carbon pricing mechanisms to public funds can be significant, and should ideally be (partially) used to help speed up the transition to keep global temperature rise well-below 2 degrees celcius, and foster sustainble development all over the world.