ANNOUNCEMENTS
As the low-carbon transition accelerates, Emissions Trading Schemes (ETS) are functioning and emerging in many regions and countries which are often termed as domestic carbon markets (DCMs). Such evolution of domestic carbon markets has been criticized in past, but as the contribution to this thematic issue on carbon markets demonstrates, the global picture is complex. For example, In the coming year, India plans to develop its own national carbon market, which will serve as a major climate finance conduit for low carbon transition, but it will be a challenging as well as complex task for India. However, Voluntary carbon markets (VCMs) are also gaining traction around the world, and in some cases, are replacing compliance markets. These new domestic market mechanisms, such as emissions trading systems or sectoral trading, can connect to international carbon markets through offset measures or directly and bilaterally to other domestic market mechanisms (e.g., other ETS). It is unclear, however, whether or how diverse developing countries will attempt to link such market tools to worldwide carbon markets. To resolve this, Article 6 could play a role in harmonizing international cooperation between voluntary and compliance carbon markets. As a result, during COP 26 in November 2021, the rules for international trade of carbon credits, known as Article 6, were agreed upon. This study examines some of the accomplishments and limits of significant Carbon Pricing Initiatives (CPIs) in developing countries and provides an outline of the nations that have been shortlisted. Also, it has made an attempt to understand how a domestic carbon market, with established reinforcement and government can support a larger future expectation of not only fulfilling or exceeding the country's NDC aspirations, but also pave the way for a meaningful implementation of Article 6 of the Paris Agreement, with possible opportunities for ITMOs across sectors for their robust environmental benefits and acceptance across geographies. It is evident from the study that despite uncertainties related to future developments, carbon markets are continuing to evolve and expand around the world.
Keywords: Carbon markets, Carbon pricing, Emission Trading scheme, Article 6, Domestic carbon markets, Paris Agreement.
