A growing number of countries and companies are setting climate neutrality and net-zero targets. Many countries’ and companies’ efforts towards climate neutrality play a positive role contributing to the fight against climate change and reducing global emissions.

Article 6 of the Paris Agreement provides the framework for a new generation of carbon markets in a context where all countries are supposed to formulate and implement ambitious Nationally Determined Contributions (NDC) towards a temperature target and ratchet their contribution on a regular basis.

A growing number of countries have started to set longer-term climate targets and develop decarbonisation strategies in addition to their shorter-term commitments under the Paris Agreement.

In this paper explore three different options for a market-based measure to address the climate impact of international shipping: an offsetting scheme, a maritime emissions trading scheme, and a climate levy.

This paper explore three different options for a market-based measure to address the climate impact of international shipping: an offsetting scheme, a maritime emissions trading scheme, and a climate levy.

During the first Kyoto commitment period, the Clean Development Mechanism (CDM) emerged to be a global standard for the global carbon market. Linking developing and industrialized countries in an international cooperation mechanism, it provided a governance and accounting framework for emission reduction efforts around the world.

The share of global emissions covered by emissions trading is expected to rise by 70 percent from a 2005 basis, according to this report released by International Carbon Action Partnership (ICAP) with detailed factsheets on all existing and planned emissions trading systems.