Many countries have introduced policy measures, such as carbon pricing, greenhouse gas offsetting mechanisms, renewable energy standards, and energy efficiency improvements, to achieve their climate change mitigation targets.

The purpose of this issue brief is to provide an overview of the latest movement of the emissions trading scheme (ETS), with a focus on the three key Asian carbon markets in Tokyo, China (esp. the pilots) and the Republic of Korea (hereinafter abbreviated as Korea).

This report explores the introduction of carbon taxes with a national offset component and their interactions with other policy areas, and makes recommendations on this topic. In this task, the study focuses on the approaches Chile, Mexico and South Africa have chosen for elaborating their carbon taxes.

Emissions trading is now a well-established tool for reducing greenhouse gas (GHG) emissions in an effort to mitigate the impacts of global climate change. By the end of 2017, Emissions Trading Systems (ETSs) will regulate more than seven billion tons of CO2e, with 19 systems operating worldwide.

This policy brief suggests that carbon pricing can accelerate the diffusion of lowcarbon technology in China, based on the results of empirical studies conducted by Kansai Research Centre of IGES focusing on China’s most energy intensive industries. Many low-carbon technologies are profitable but require some initial investment.