Carbon Markets Overview
We are leading innovations around established carbon markets. Currently, we are focusing on solutions around the EU Emissions Trading System (EU ETS), California’s cap and trade program, the Regional Greenhouse Gas Initiative (RGGI), UK Emissions Trading System(UK ETS) and the Voluntary Carbon Market. We are also closely tracking emerging markets for opportunities for investment.
EU ETS
This system is a key component of the EU's efforts to address climate change through the cost-effective reduction of greenhouse gas emissions. It is the world's first major carbon market and remains the biggest one. EU ETS is a leader that other programs look to for lessons and advice.
CA Cap and Trade
Under AB 32, California established a cap-and-trade program to reduce the GHG emissions. In the ensuing years, the state has made significant progress reducing emissions under this program. California has linked its program with Quebec to create a regional cap and trade system.
RGGI
The Regional Greenhouse Gas Initiative (RGGI) is a market among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont to cap and reduce power sector CO2 emissions. Additional states are considering joining.
UK ETS
A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS on 1 January 2021. The scheme was established to increase the climate ambition of the UK’s carbon pricing policy while protecting the competitiveness of UK businesses.
Voluntary Carbon Markets
“Voluntary carbon markets are markets where carbon credits are purchased, usually by organizations, for voluntary use rather than to comply with legally binding emissions reduction obligations. Voluntary carbon markets are growing, driven partly by demand from businesses looking to 'offset' their emissions.”