Emissions Trading Worldwide: International Carbon Action Partnership (ICAP) Status Report 2016

Emissions Trading Worldwide: International Carbon Action Partnership (ICAP) Status Report 2016 The International Carbon Action Partnership’s Status Report 2016 shows emissions trading is gaining ever more importance in the fight against climate change. The International Carbon Action Partnership’s (ICAP) Status Report 2016, highlights the continuous growth and key role that emissions trading systems (ETS) play in the fight against climate change. Indeed, 2015 alone saw the announcement of five new ETSs in Asia and North America. The report is a yearly review on all activities in emissions trading around the world, which highlights important trends and provides an educated outlook on central developments in carbon markets to come. The Paris Agreement sent a strong signal for ambitious and sustained global climate action. By allowing countries to use international carbon markets to meet their commitments, the Agreement has recognized the cost-effectiveness potential of market-based solutions to climate change. Over half of the parties to the UNFCCC have indicated they plan to use or consider using international markets in their compliance strategies. Now that the global framework is in place, the focus is on implementing the pledges made. The next few years will see a proliferation of climate measures, including emissions trading. As of 2016, there are already 17 ETS in place around the world, covering more than four billion tons of greenhouse gas emissions.