The International Carbon Action Partnership (ICAP) published the 2023 edition of its Emissions Trading Worldwide report, funded by the Federal Ministry for Economic Affairs and Climate Action from Germany.

One of the main findings of the study is that instead of retreating from climate ambitions as economic pressures piled up, policymakers around the world doubled down on their commitments and accelerated plans to decarbonize, using their Emissions Trading Systems (ETSs) to help. Moreover, the authors state that ETSs are generating record level of revenues that can be used to both deliver further GHG reductions and to alleviate the burden on low-income communities and households, either directly via rebates or indirectly, such as funding energy efficiency improvements in state housing.

Throughout year 2022, three new ETSs began, and an additional 20 were under development or consideration, mainly in Latin America and Asia. Particularly in Latin America, the case studies of Chile, Colombia, Brazil and Mexico are highlighted. The government of Chile published its 2022-2026 Energy Agenda in August 2022, stating that a pilot ETS project for the energy sector will be developed to evaluate the role of this instrument in achieving emissions reductions and a just transition in a cost-effective manner. Regarding Colombia, the “Climate Action Law” came into force in December 2021, setting a goal to fully implement an ETS by 2030. A draft bill was published in May 2022 in Brazil, aiming to regulate emissions trading. Finally in Mexico, the operational phase of the Mexican ETS began in January 2022, while regulations are expected for first half of 2023.