Carbon market clubs and the new Paris regime

This paper looks at existing and future climate clubs or club-like arrangements, which bring together groups of national Governments, cities and other sub-national jurisdictions, and business organisations, in pursuit of joint plans for climate change mitigation, and also adaptation. It considers how these climate clubs might adopt emissions trading or develop into carbon markets. In particular, it examines systems and services developed to enable the smooth functioning of individual Emissions Trading Schemes (ETSs), linked pairs of ETSs, and networks of ETSs coming together in various formations that can be described as Carbon Markets Clubs (CMCs). It analyses how these CMCs can be compatible with, and could assist the development of, climate clubs.