Interest in carbon markets will rise globally

Subject

Carbon markets.

Significance

Prices for carbon allowances in the EU Emissions Trading System (ETS) have risen this year, reviving interest in carbon markets as a means of combatting climate change. With a report from the UN Intergovernmental Panel on Climate Change (IPCC) last month calling for drastic action to slash emissions by 2030, that interest could rise further.

Impacts

• Some 88 countries are considering carbon pricing to meet emissions reduction commitments.
• Growing interest in ETS may trigger a revival of fraudulent schemes around the carbon market.
• Renewed concerns over higher carbon allowance prices will make it harder to agree reduction targets.