Emission Trading Scheme (ETS) and its current situation in the World
Student name: Mr Kingshuk Das
Guide: Dr Kaushik Ranjan Bandyopadhyay
Year of completion: 2016
Host Organisation: EKI Energy Services Ltd
Supervisor (Host Organisation): Ms Rucha Natu
Abstract: As the world moves on from the climate agreement negotiated in Paris, attention is turning from the identification of emissions reduction trajectories—in the form of Nationally Determined Contributions (NDCs)—to crucial questions about how these emissions reductions are to be delivered and reported within the future international accounting framework. The experience to date shows that, if well designed, emissions trading can be an effective, credible, and transparent tool for helping to achieve low-cost emissions reductions in ways that mobilize private sector actors, attract investment, and encourage international cooperation.
Currently, about 40 national jurisdictions and over 20 cities, states, and regions—representing almost a quarter of global greenhouse gas (GHG) emissions—are putting a price on carbon as a central component of their efforts to reduce emissions and place their growth trajectory on a more sustainable footing. Together, carbon pricing instruments cover about half of the emissions in these jurisdictions, which translates to about 7 gigatonnes of carbon dioxide equivalent (GtCO2e) or about 12 percent of global emissions. An increasing number of these jurisdictions are approaching carbon pricing through the design and implementation of Emissions Trading Systems (ETS). As of 2016, ETSs were operating across four continents in 35 countries, 12 states or provinces, and seven cities, covering 40 percent of global GDP, and additional systems were under development.
Key words: ETS, NDCs, GHG (greenhouse gas) emissions
