- The Intergovernmental Panel on Climate Change (IPCC) announced carbon emissions and greenhouses gasses are still rising across all major sectors globally, albeit at a slower pace.
- Despite initial progress, effective actions are required from governments and the financial and economic world to provide sufficient investments, creating opportunities within regulated markets.
- Many initiatives have been implemented around the world, however it has been noticed that the carbon finance and the creation of the emission trading system (ETS) will be one of the major tools used to achieve economic growth and emissions reduction.
- The ETS market operates on a “cap-and-trade” principle where businesses, investors and countries, as in the case of the European Union’s ETS, can trade carbon permits. Polluters that exceed their permitted emissions must buy permits from others with permits available for sale. Since the European Union launched the world’s first international ETS in 2005, many other countries around the world have created their carbon markets increasing the amount of the “priced emissions”.
Introduction
Documents
Emission Trade System (ETS) – Carbon Market
6 Mar 2023
Contacts
Analytical
- Alessandro Perrone
- Structured Finance Analyst
- alessandro.perrone@arcratings.com
Business development
- Jason Barrass
- Chief Commercial Officer
- +44 7795 003920
- jason.barrass@arcratings.com
- Rhonda Moore
- Business Development Director
- +44 7553 694520
- rhonda.moore@arcratings.com