Commoditizing emissions Global compliance carbon landscape. As nations across the globe sharpen their focus on the net-zero transition, the role of carbon prices can be crucial. The unfolding of new mechanisms to account for carbon costs shifts away from the traditional carbon tax or a cap and trade system, giving emerging economies a more egalitarian platform to design systems, in line with their developmental goals. Asia Pacific Europe, Middle East and Africa Americas Switzerland Finland Sweden Scan code for interactive version Total emissions* South Korea Singapore Price Singapore Japan (min=0.4, max=4 billion mt) Indonesia Thailand ($/mtCO2e – Sep 29. min=0, max=133) South Korea EU ETS¹ Germany Finland Germany UK China India Chile New Zealand Australia EU ETS¹ UK Brazil I China Mexico California Chile Australia Japan RGGI² Malaysia Colombia Sweden Switzerland Canada California RGGI² Carbon market status and voluntary credits allowed for compliance Country Australia New Zealand South Korea Japan Malaysia Indonesia India China Thailand Singapore EU ETS¹ Switzerland UK Sweden Finland Germany US -RGGI² US -California Canada Mexico Brazil Colombia Chile Carbon market status Functional carbon market since 2012 Functional ETS since 2008 Functional ETS since 2015 Functional carbon tax since 2012, ETS to start 2028-29 ETS estimated to start by 2028 Functional ETS since 2023 (Coal sector only) ETS to start 2026 ETS since 2021 (Power sector only) Voluntary ETS since 2013 Carbon tax Functional ETS since 2005 Functional ETS since 2008, linked with EU ETS Functional ETS since 2021 Carbon tax since 1991 Carbon tax: 77 Eur/mt transport fuels, 53 Eur/mt heating fuels in 2022 Functional ETS since 2021 Functional ETS since 2009 Functional ETS since 2013 Mix of ETS, carbon tax Functional ETS from 2023 (Industry, Power) Voluntary ETS since 2013 Carbon tax, offset scheme, ETS under planning Carbon tax, ETS under planning Voluntary offsets allowed for compliance No international VCM offsets No offsets KOC up to 5% allowed J-Credits International VCM credit trading only No offsets No offsets CCER up to 5% allowed T-VER credits to be allowed Verra, GS & GCC offsets upto 5% allowed No offsets No offsets No offsets No offsets No offsets No offsets Offsets 3.30% allowed Offsets below 8% allowed Offsets allowed Offset up to 10% to be allowed Offsets to be allowed Offsets allowed Offsets to be allowed ¹27 EU states and Iceland, Liechtenstein, and Norway. ²Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia. *Total emissions are as per latest data available from IEA, ICAP or individual countries ranging from 2018-2022. Australia, New Zeland, South Korea, EU ETS, California, RGGI are Platts prices; the rest are market sourced. China ETS price is sourced from SEEE. Source: S&P Global Commodity Insights, ICAP, IEA, Climate Tracker, Clean Energy Regulator, MoE Korea & New Zealand, TGO, SEEE Credit: Agamoni Ghosh, Kshitiz Goliya, Kanchan Yadav, CI Information Design. Copyright © 2023 by S&P Global Inc. All rights reserved. October 2023 Commodity Insights 23
Commodity Insights Voluntary carbon markets: a matter of trust: Page 23
