Carbon trading programs are proliferating all over the world. These allow companies to buy and sell the right to emit carbon dioxide. As of 2017, the European Union's Emissions Trading System (EU ETS) is the largest, covering 11,000 emitters and 2 billion tons annually across all EU member states, as well as Norway, Iceland and Liechtenstein. California and Quebec share a market, which Ontario, Manitoba and provinces in Brazil and Mexico plan to join. China started the first 7 pilot schemes in 2013 and is due to launch its national ETS later this year, comprising of 7,000 emitters and 5 billion tons of CO2 annually. Overall, around 100 nations have stated that they are planning or considering carbon pricing to reach their emissions-reduction goals in the 2015 Paris agreement on climate change.
After years of work to establish to globally coordinated “top-down” climate policy with very limited success, there’s been an important pivot towards a more decentralized, bottom-up strategy. This kind of linkage does not require that all market design features are perfectly harmonized, but it does require careful coordination of design elements deemed to be critical. As a carbon markets pioneer, Virtuse is spearheading the challenge with its unique, tailor-made B2B platform