Policy Paper : Domestic Emission Trading Systems in Developing Countries – State of Play and Future Prospects

As plans for the establishment of emissions trading systems (ETS) emerge in various developing countries, prospects for creating a global carbon market seem to finally get in reach.

Links among ETS of every type of country will have to deal with several design issues, all of which raise several challenges that policy makers have to solve in order to establish working systems.

In this paper, six developing countries with possible domestic ETS are analysed. Brazil, China, India, Kazakhstan, Mexico, and South Korea all have plans in various stages for trading systems.