Pricing Carbon: Lessons from the World's Carbon Markets

Carbon markets are expanding across major economies, from established compliance systems such as the EU Emissions Trading System to a range of voluntary markets. Their designs differ widely in coverage, price formation and compliance rules. Border measures are also linking domestic carbon policy with international trade and competitiveness. Design choices determine whether a market delivers a real price signal or simply shifts emissions elsewhere. Systems already in operation provide a decade or more of evidence on what has worked. The discussion will focus on market design choices, the interaction with border measures, and the lessons available from systems already in operation to build credible markets that preserve environmental integrity without placing domestic industry at a competitive disadvantage.