Carbon Pricing Under Pressure: Withering Markets?

Politics and Governance, Vol 10, No 1, 2022, pp. 230-234

Emissions trading systems (ETSs) are operating and developing in many regions and countries. Doubts have been raised about their effectiveness, but the global picture has many nuances, as the contributions to this thematic issue on carbon markets show. In this editorial, we briefly review some of the achievements and limitations of key ETSs, and provide an overview of the assembled articles. The cases examined in this issue include carbon markets rules under the Paris Agreement, the reform of the EU ETS and the proposed expansion of its sectoral coverage to shipping, and emissions trading initiatives in China, the USA, and New Zealand. The evidence indicates that, despite uncertainties related to future developments, carbon markets are continuing to evolve and expand around the world.

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