The Carbon Market Challenge (Preventing Abuse Through Effective Governance)

Title

The Carbon Market Challenge (Preventing Abuse Through Effective Governance)

Length

100 p.

Author

Regina Betz, Axel Michaelowa, Paula Castro, Raphaela Kotsch, Michael Mehling, Katharina Michaelowa, and Andrea Baranzini

Organisation

Cambridge University Press

Year

September 2022

Type

Book

Keywords

Carbon pricing, EU ETS, Pollution permits

Abstract

Carbon markets – both emissions trading systems and baseline-and-credit systems – are an increasingly common policy instrument being introduced to address climate change mitigation. However, their design is crucial to ensure that they deliver cost-effective emission reductions while maintaining environmental integrity. This Element puts together a comprehensive, principle-based overview of the risks and abuses to environmental integrity and cost-effectiveness that have emerged for carbon markets at all jurisdictional levels around the world, provides concrete examples, and offers effective policy and governance solutions to overcome such risks.