全球碳排放权交易：ICAP 2023 年进展报告-英文-20230322-ICAP 秘书处

ICAPStatusReport2023

InternationalCarbon

ActionPartnership

EMISSIONS

TRADING

WORLDWIDE

STATUSREPORT2023

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EmissionsICAPStatusReport2023

EDITORIALTEAM:

ZhibinChen,StefanoDeClara,BaranDoda,AlexanderEden,MaiaHall,LeonHeckmann,IrynaHolovko,DavidHynes,MartinaKehrer,StephanieLaHozTheuer,TrevorLaroche-Theune,AndrésOlartePeña,VictorOrtizRivera,SantiagoRamírezNiembro,AnastasiaSteinlein,TheresaWildgrube.

TheICAPSecretariatexpressesitsgratitudetopolicymakersfromtheICAPmembershipandfurthercollaboratorsfromtheemissionstradingfield,whoprovidedinsightfulwrittencontributionsand/orcarefullyreviewedthereport:

RobinDamberger(Austria),PetraKrems-Ladenberger(Austria),HenrikNeier(Austria),FabianStöckl(Austria),LuizMauriciodeAraujoNavarro(Brazil),RaquelBredados

Santos(Brazil),GustavoSaboiaFonteneleeSilva(Brazil),RachelGold(California),BobLanguell(California),ShelbyLivingston(California),AmyNg(California),RajinderSahota(California),MarkSippola(California),CamilleSultana(California),JeffLindberg(Canada),SimonTudiver(Canada),MarijkeVermaak(Canada),MariaJoseGarcíaCabello(Chile),JuanPedroSearle(Chile),IsabellaVillanueva(Chile),YiZou(ChinaBeijingEnvironmentExchange),QiangLi(ChongqingInternationalInvestmentConsultationGroup),MarcoAntonioMurciaBaquero(Colombia),PolonaGregorin(EuropeanCommission),DamienMeadows(EuropeanCommission),MetteQuinn(EuropeanCommission),JoaoSerranoGomes(EuropeanCommission),BeatrizYordi(EuropeanCommission),JuliaZiemann(EuropeanCommission),

JosDelbeke(EuropeanUniversityInstitute),MichaelThemann(Germany),DirkWeinreich(Germany),SaurabhDiddi(India),DidaGardera(Indonesia),Ministryofthe

EnvironmentofJapan,BotagozAkhmetova(Kazakhstan),MuhamadRidzwanBinAli(Malaysia),AhmadFaridBinMohammed(Malaysia),MohdHafdzuanAdzmi(Malaysia),ZainorfarahZainuddin(Malaysia),WilliamSpace(Massachusetts),DianaKarinGuzmánTorres(Mexico),SurielIslasMartínez(Mexico),JelenaBan(Montenegro),RankoLazovic(Montenegro),JonathanBinder(NewYorkState),LoisNew(NewYorkState),SarahDeblock(NewZealand),FreeyaFarrar(NewZealand),ScottGulliver(NewZealand),KylavanHeerden(NewZealand),TedJamieson(NewZealand),JacquelineRuesga(NewZealand),RobertOndhowe(Nigeria),KatherineQuinlan(NorthCarolina),RandyStrait(NorthCarolina),JonasGoldman(NovaScotia),NancyRondeaux

EMISSIONS

TRADING

WORLDWIDE

INTERNATIONALCARBONACTIONPARTNERSHIP

STATUSREPORT2023

CITEAS:

ICAP(2023).EmissionsTradingWorldwide:StatusReport2023.

Berlin:InternationalCarbonActionPartnership.

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EmissionsICAPStatusReport2023

(NovaScotia),AndrewWebber(NovaScotia),WhitneyDorer(Oregon),RachelFernandez(Oregon),NicoleSingh(Oregon),HadikaSyedaJamshaid(Pakistan),JennieDemjanick(Pennsylvania),LouieKrak(Pennsylvania),OttmarEdenhofer(PotsdamInstituteforClimateImpactResearch),MichaelPahle(PotsdamInstituteforClimateImpactResearch),JonathanBeaulieu(Québec),ClaudeCôté(Québec),JulieCôté(Québec),SteveDoucet-Héon(Québec),NicolasGarceau(Québec),OlivierLacroix(Québec),KimRicard(Québec),MouradZiani(Québec),MinistryoftheEnvironmentoftheRepublicofKorea,JinLi(ShanghaiEnvironmentandEnergyExchange),

LishenLi(SinoCarbon),SiyueLiu(SinoCarbon),SimonFellermeyer(Switzerland),ThomasKellerhals(Switzerland),RongphetBunchuaidee(Thailand),PathomChaiyapruksaton(Thailand),PhakamonSuparppunt(Thailand),NorikoAdachi(TokyoMetropolitanGovernment),AokiTomotaka(TokyoMetropolitanGovernment),AbdulkadirBektaş(Türkiye),KaanMoralı(Türkiye),OkanUğurlu(Türkiye),ÖyküUyanık(Türkiye),PavloMasiukov(Ukraine),OlgaYukhymchuk(Ukraine),RufinaAcheampong(UnitedKingdom),IshtarAli(UnitedKingdom),JoeCooper(UnitedKingdom),MatthewDavies(UnitedKingdom),SeamusGallagher(UnitedKingdom),JoeGlynn(UnitedKingdom),CharlieLewis(UnitedKingdom),HannahLewis(UnitedKingdom),JacobRose(UnitedKingdom),GregSmith(UnitedKingdom),BrianWoods(Vermont),TangTheCuong(Vietnam),LuongQuangHuy(Vietnam),MaiKimLien(Vietnam),BillDrumheller(Washington),LukeMartland(Washington).

TheICAPSecretariatisgratefultotheFederalMinistryforEconomicAffairsandClimateAction,Germany,forfundingthisreport.adelphiconsultGmbHlendsscien-tificandtechnicalsupporttotheICAPSecretariatandcoordinatedthecompilationandproductionofthereport.

WewishtothankKatieKouchakji(KKECommunications)forhercarefuleditingandproofreadingofthereport,aswellasforhercommunicationadvice.

AspecialthankstoCarolinFaulenbachandJanibelMunozTorresforeditorialassistance.

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ContentsICAPStatusReport2023

FACTSHEETSABOUTICAP

0304

INFOGRAPHICS

0102

CONTENTS

FOREWORD5

EXECUTIVESUMMARY7

PRACTITIONERINSIGHTS

NOTESONMETHODSANDSOURCES210

LISTOFACRONYMS215

FOREWORD

ADVANCINGEMISSIONSTRADINGSYSTEMS:CHALLENGESANDOPPORTUNITIESONTHEPATHTODEEPDECARBONIZATION

T

15thbirthdayattheendoflastyear.Atthetime,19governmentrepresen-tativesgatheredinPortugaltocreateaspaceforgovernmentsandpublicauthoritiestodiscussmarket-basedsolutionsasaresponsetoglobalclimatechange.“Strong,immediate,andsustainedactionisessentialtoavertsevereenvironmental,health,economic,andsecurityimpacts”:ICAP’sfoundingmemberschosethesewords15yearsagotoalertustotheurgencyofaction.

Andactiontherewas.Overthepastdecadeandahalf,ICAPhasincreaseditsmembershipbaseto40memberandobserverjurisdictionsfromacrosstheglobe.Ithasbecomethecentraldiscussionforumandknowledgehubforemissionstradingforbothspecializedandbroaderaudiences.Ithasdeliveredcoursestoover700participantsfrommorethan60countries,buildingcapacityonemissionstradingasakeypolicyinstrumenttotackleclimatechangeglobally.

Thisyear,wealsocelebratethe10theditionofourannualStatusReportonemissionstradingworldwide.Intenyears,theworldofemissionstradinghaschangeddrastically.Systemshaveundergoneimportantstructuralreformstoensuretheycandeliveronincreasinglyambitiousclimatetargets.Jurisdictionshavelegislatedtightercapsandfoundednewcooperationinitiatives.Lookingbackto2014,thefirsteditionofourreportcountedonly13ETSsinforceand15underconsideration.Today,wehavereached28systemsaroundtheworldinforce,and21atdifferentstagesofdevelopmentandconsideration,castacrossdifferentsupra-,national,andsubnationalgeographiesandeconomies.

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ForewordICAPStatusReport2023

Someofthesemarketshavenowbeenoperatingfornearlytwodecadesandhaveovercomemajorcrises.Theworld’soldestcarbonmarket,theEuropeanUnionETS,survivedthe2008globalfinancialcrisisanditseconomicaftermath.Reformssincethenhavemadeitmoreresilient,andothersystemsaroundtheworld,fromCaliforniatoNewZealand,haveimplementedsimilarbolsteringmeasures.ThesereformswereputtothetestduringtheCOVID-19pandemicattheturnofthisdecade,butthemarketsrespondedashopedandhaveweatheredthiswell.

"Intenyears,theworldofemissionstradinghaschangeddrastically.Systemshaveundergoneimportantstructuralreformstoensuretheycandeliveronincreasinglyambitiousclimatetargets."

Thepastyearhasmarkedourentryintoanotherstormwithayetuncertainoutcome:theglobalenergycrisis.Thiscrisisischaracterizedbyrecordhighenergyprices,fuelshortages,andrisingpoverty.Theseeffectsarenottheresultofambitiousclimatepoliciessuchascarbonpricing,assomearequicktoclaim,butstemfromourexcessivedependenceonfossilfuels.Wemadegreatstridestocurbouruseoffossilfuelsin2022,withtheuptakeofheatpumps,installationofrenewables,andpurchasesofelectricvehiclesontherisearoundtheworld.Butweneedtokeepstrivingtodomore,tokeepdevelopingreliableandaffordablezero-carbonoptionswhileprotectingvulnerablepopulations.

AnETSisapowerfulinstrumentthatcanhelpbring

aboutthesenecessarychanges.Asthesignedarticlesinthisreportshow,thepricesignalofanETSprovidesanimportantincentivetoinvestinagreen

RAJINDERSAHOTA

Co-chairoftheInternationalCarbon

ActionPartnershipandDeputyExecutive

Officer–ClimateChangeandResearch

CaliforniaAirResourcesBoard

DIRKWEINREICH

Co-chairoftheInternationalCarbonAction

PartnershipandHeadofDivision‚'Climate

Legislation,EmissionsTrading’

FederalMinistryforEconomicAffairsand

ClimateAction,Germany

economyandencouragescompliancewithemissionreductiontargets.Revenuerecyclingcansubsidizeemergingtechnologies,helpacceleratethedecarbonizationofourindustrial,energy,andtransportationsectorsandsupportvulnerablecommunities.Indeed,theseareallmeasuresthathelpprotectsocietyfromhighenergyprices.

Emissionstradinghasacriticalroletoplay,notonlyinourexitfromthecurrentenergycrisisbutalsotohelpgovernmentsachievetheirnet-zerotargetsbymid-century.Itsupportsreductiontrajectoriesandsetsmilestonesontheroadtocarbonneutrality.In15years,ICAPhasbecomeanessentialforumforgovernmentsandpublicauthoritiestoshareknowledgeandexperiencesofETS.Asweenterthemostdecisiveyearsofclimateaction,weatICAPpromisetocontinuetopavethewaytowardsadecarbonizedworld.

TableofContents

1PractitionerInsights

2Infographics

3Factsheets

4AboutICAP

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ForewordICAPStatusReport2023

EXECUTIVE

SUMMARY

Thisyear’seditionmarksthe10thanniversaryoftheInternationalCarbonActionPartnership(ICAP)StatusReportandprovidesagoodopportunitytolookbackatdevelopmentsinemissionstradingsystems(ETSs)overthelastdecade.SincethefirstStatusReport,thenumberofETSsinoperationhasmorethandoubled,growingfrom13tothecurrent28,andsotoodidtheshareofglobalemissionscoveredbyanETS,whichjumpedfrom8%to17%,followingtheincreasefrombelow4gigatonsin2014tothecurrent9gigatons.

Beyondthebarenumbers,itisremarkabletolookbackandseewhatthemesanddevelopmentscharacterizedthefirstICAPETSStatusReportin2014.Thereport’sforewordopenedbysorelynotingthat“despiteyearsofinternationalnegotiations,acomprehensiveglobalaccordtohaltclimatechangeremainselusive”.Inthereport’sfirstsignedarticle,EUpolicymakersreflectedontheongoingdebatearoundbackloadingintheEUETS,ameasureaimedatmitigatingoverallocationinthesystemduetotheglobaleconomicdownturnthatfollowedthe2008financialcrisis.OtherarticlesfocusedonthelessonslearnedfromthefirstfewmonthsofoperationoftheShenzhencarbonmarket,China’sfirstpilotETS,andontheexperienceswiththeinvestmentofauctionproceedsintheRegionalGreen-houseGasInitiative(RGGI),whichwastheonlyETSwithextensiveexperience,giventhatauctioninginothersystemswasjustbeginning.ThereportwaseagerlyawaitingtheoperationalizationoftheETSlinkagebetweenCaliforniaandQuebec,withthefirstjointauctionscheduledforlaterthatyear,andthelaunchoftheKoreanETSin2015.

FastforwardtenyearsandtheParisAgreementisinfullforceandakeydriverforglobalclimateaction.TheEUETS,alongwiththeotherexistingETSs,hasfullyrecoveredfromtheeffectsofthe2008financialcrisis,weatheredaglobalpandemic,andisprovingresilienttoanunprecedentedglobalenergycrisis.BuildingontheexperiencegainedwiththeETSpilots,Chinahaslaunchedanation-wideETS,whichisnowtheworld'slargestsuchsystem.Theuseofauctionrevenueshasbecomeakeyaspectinmostmaturesystems,anditisespeciallyusefulinmaintainingpublicsupportforcarbonpricing,mitigatingtheeffectsoftheenergycrisis,andachievingadditionalco-benefits.ThelinkagebetweenCaliforniaandQuebecisnowaprimeexampleofsuccessfulcross-borderlinkingandtheKoreanETS,nowinitsthirdphaseofoperation,isareferenceforotherjurisdictionsinAsia.Andthesearejustsomeexamples.

Thelastdecadehasnotbeensmoothsailing.Astheglobaleconomyslowlylifteditselfoutofthepandemic,warinEuropehastriggeredyetanotherseriesoftempeststhathaveaffectedmanycountriesacrosstheworld.Thestarkestoftheseistheongoingenergycrisis.Ithasnotonlylaidbaresevereenergydependenciesbuthasonceagainservedasastresstestforclimatepolicieslikeemissionstrading.

Asgovernmentsandcompaniesaddressthesechallengesbothintheimmediateandmid-tolongerterm,itisimportanttokeepsightofambitiousclimatetargetsandcommitmentstonetzeroby

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ExecutiveSummaryICAPStatusReport2023

mid-century.Atthesametime,vulnerablesegmentsofthepopulationmustbeprotectedthroughsupportivepoliciestoensureasociallyjustgreentransition.Emissionstradingremainspivotalinthiscontextandliesatthecoreofdecarbonizationstrategiesinanincreasingnumberofjurisdictions.

This10theditionoftheICAPEmissionsTradingWorldwidereportprovidesacompre-hensiveanalysisofthelatestdevelopmentsandkeytrendsintheETSspacefromthepastyear.ItincludesaseriesofinfographicsthatillustrateimportantETSfactsandfigures,aswellasdetailedfactsheetsonallsystemscurrentlyinforce,underdevelopment,orunderconsideration.

ThereportconfirmsthegrowingmomentumfortheETSdevelopments,asthenumberofsystemscontinuestorise.Therearenow28suchsystemsinforce,threemorethanlastyear,with20moresystemsunderdevelopmentorconsiderationacrosstheworld,particu-larlyintheLatinAmericanandAsia-Pacificregions.Forthefirsttime,weseeconcretestepstowardsemissionstradingbeingtakeninAfrica.TheshareofglobalemissionscoveredbyanETSremainsunchangedat17%,astheincreaseincoveragethankstotheintroductionofnewsystemswasoffsetbytheoverallreductioninemissionsunderETScaps–asisexpectedfromsystemsdesignedtoreduceemissions.

Despitethechallengingandunprecedentedglobalbackdrop,existingsystemsshowcasedmaturityandprovedtoberemarkablyresilienttosignificantexternalshocks.Systemscurrentlyinoperationhaveweatheredaneventfulyearwithoutmajordisruptions.Aftermakingsignificantgainsin2021,pricesinmostsystemsstartedandended2022ataroundthesamelevels,despitesomefluctuationsoverthecourseoftheyear.Theobservationthatallowancepricesdidnotrisein2022isworthnotinginthecontextoftheongoingenergycrisisanditsimpactsonconsumers,whohaveexperiencedsignificantrisesintheconsumerpriceindexaswellasitsenergycomponent.

Emissionstradingconfirmeditselftobeavaluablesourceofrevenuesas2022markedanotherrecord,withmorethanUSD63billionofactioningproceedscollectedinayear.Asaresultofhigherallowancepricesandanincreasinguseofauctioning,morethanhalfofthetotalrevenueraisedbyETSssince2008wascollectedin2021and2022,withmanygovern-mentschannelingtheseresourcesbackintofurtherclimateaction,subsidizingemergingtechnologies,orsupportinglower-incomehouseholds.

Thereportalsofeaturesacollectionofdeep-divearticleswrittenbypolicymakersandexpertsfromkeyjurisdictionsaroundtheworld,whichoffervaluableinsightsintotherapidlyevolvingETSlandscape.

TableofContents

1PractitionerInsights

2Infographics

3Factsheets

4AboutICAP

TheRussianinvasionofUkraineinearly2022madeEurope’senergydependencepainfullyclear,justaftertheEUcommittedtobecomingclimateneutralby2050andreducenetemissionsby55%by2030,comparedto1990.Thewarhassignificantlyimpactedclimatepolicy.Inhisarticle,JosDelbekeoftheEuropeanUniversityInstituteandformerDirec-tor-GeneraloftheEuropeanCommission’sDGforClimateAction,raisesthequestion:areenergysecurityanddecarbonizationcompatiblegoals?HelaysouttheimportanceofcombiningEurope’senergysecurityandclimateobjectivesandengaginginstrongbilateralandmultilateralcooperation.Lookingahead,theEUmustleverageitsGreenDeal,energypolicies,andcarbonpricingmechanismstoacceleratethetransition.

Astheenergycrisishastakenhold,therearefurtherlessonstobelearnedaswepushaheadwithcarbonpricing.AnarticlebyOttmarEdenhoferandMichaelPahleofthePotsdamInstituteforClimateImpactResearchhighlightshowtheEUhassuccessfullyuphelditsclimateambitions,despiteconcernsthatcarbonpricingwoulddirectlyexposehouse-holdstoincreasedcostsandwanepublicsupportforbroaderclimatepolicy.Theauthorsemphasizetheneedtointegrateallreformswithotherpolicydomains,suchassocialpolicytoprotectvulnerablecommunitiesandenergysecuritytoleverageitssynergywithclimatepolicyandfosterEuropeansolidarity.

TheEUhasmovedrapidlytoaddresstheurgentclimatecrisis,committingtoreducingnetGHGemissionsbyatleast55%below1990levelsby2030.AnarticlebytheEuropeanCommissiondetailshowthebloc’sclimateandenergypolicy,includingtheEUETS,hasbeenundergoingrevisionstosupportthisgoal.Thesereformsincludeareducedcap,expansionoftheETS’scoveragetomaritimetransport,andmoreconcerteduseoftheInnovationFundandModernisationFundtocatalyzethedeploymentoflow-carbontechnologiesandprovidesupporttolower-incomeMemberStates.ThenewEUETS2willincentivizeemissionsreductionsfromroadtransport,buildings,andindustrynotcoveredbytheexistingsystem.TheaccompanyingSocialClimateFundwillchannelrevenuesfromemissionstradingtoprovidededicatedsupporttovulnerablecitizensandbusinesses.Intheseways,theEUiscommittedtoadvancingthegreentransitionacrosstheentireeconomywhileleavingnoonebehind.

Next,theUnitedKingdomreflectsonitsprogresstofurtherdeveloptheUKETSandengagewithstakeholders,particularlyamidtheongoingenergycrisis.TheUKETSisattheheartofdeliveringontheUK’snetzerotarget.Thearticleemphasizestheimportanceofcomple-mentarypoliciesandaholisticdecarbonizationapproachtoaddressingclimatechangeandthechallengeofincreasingcosts.Italsohighlightstherolethatcarbonleakagemitigationmeasuresandtheexpansionoftheschemetonewsectorscouldplayinprovidingcertaintytothemarketanddecarbonizationefforts.

MeanwhileacrosstheAtlantic,Québec’scap-and-tradesystem,launchedin2013andlinkedtoCalifornia’sprogramsince2014,isgoingstrongafter10years.Overtime,ithasproventhatitcanwithstandexternalshocks.Asitlooksahead,Québecisprioritizingajustand

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ExecutiveSummaryICAPStatusReport2023

equitabletransitiontowardsagreeneconomy.Initsarticle,Québecshowshowitscollab-orationwithCaliforniahasbeenfruitful,howithaschanneledETSrevenuesintofurtherclimateaction,andhowthehighshareofrenewablesinitselectricitygridhaveshieldeditfromtheworstimpactsoftheenergycrisis.

Initsarticle,Chileshowshowcarbonpricingpoliciescanbetailoredtospecificcontexts.Thecountryhashadacarbontaxinplacesince2017.Startingin2023,entitiescoveredunderthetaxwillbeabletocomplywiththeirobligationsusingoffsetsstemmingfromsourcesnotregulatedbythetax.Thisnewsystemaimstopromotemitigationinothersectorsanddevelopadomesticmarketforoffsets.Lookingahead,underthebanneroftheframeworklawonclimatechange,theMinistryofEnergyislookingintoestablishingasystemofGHGemissioncaps,similartoabaseline-and-creditsystemforhigh-emittingsectors,aswellasacap-and-tradesystemforthepowersector.Bothinstrumentswouldsupportacost-effectivetransitiontowardscarbonneutrality.

TheNewZealandEmissionsTradingScheme(NZETS)hasbeenthecountry’sprimarytooltohelpreachitsclimatetargets.Initsarticle,NewZealanddescribestheroleofitsfirstEmissionsReductionPlan,whichsetsthecoursetonetzeroby2050andhighlightsemissionspricingasakeyinstrument.Theplancompilesahostofregulationsandsupportingpoliciesthatwillhelpunlocknewideas,businesses,andmarketstocost-effectivelydriveclimateaction.ThearticlepointstotheimportanceofaddressingthedistributionalimpactsoftheNZETSandweavingsuchconsiderationsintothepolicydesignitself.

YEARINREVIEW

Throughout2022,ETSsacrosstheglobehaveundergoneaseriesofdevelopments,includingpolicydecisionsspurredbyrisingpricescausedbytheenergycrisis.NewsystemsarealsobeingintroducedasjurisdictionsworktodesignandimplementETSs.Below,wesummarizemajorupdatesfromthesystemscurrentlyinforce(i.e.,thosealreadyinoperation)andthoseunderdevelopment(i.e.,whereamandateforanETSisinplace,andwheresystemrulesarecurrentlybeingdevelopedbutnotyetinforce),aswellasotherjurisdictionswhichareconsideringanETS.

EUROPEANDCENTRALASIA

Austria:Austria’snationalETSbeganoperationinOctober.OriginallysettobegininJuly,thesystemwassuspendedforthreemonthsaspartoftheAustriangovernment’senergypricereliefplan.ByitslaunchinOctober,regulatedentitieshadtoopenaregistrationaccountonthededicatedplatform.Lateregistrationwaspossiblewithoutpenaltyuntil1February2023.

EuropeanUnion:InDecember,theEUParliamentandCouncilreachedanagreementonamajorreformoftheEUETS,strengtheningitsambitioninordertoachievetheEU’s55%emissionsreductiontargetfor2030.ThereformincludesatightercapfortheexistingETSforelectricity,industry,andaviationandaphase-inofthemaritimesectorfrom2024onward.Aphase-outoffreeallocationforsomeindustrialsectorswillbeaccompaniedbyaphase-inofacarbonborderadjustmentmechanismfrom2026.Moreover,theEUdecidedtointroduceanewEUETSforbuildings,roadtransport,andprocessheatinindustryin2027or,incaseofhighenergyprices,in2028.

Germany:2022markedthesecondyearofoperationoftheGermanETS.AccordingtoanevaluationreportpublishedinNovember,thesystemhasbeensuccessfullyimplemented.AsofOctober,1,700regulatedentitiesand500intermediarieshadopenedaregistryaccount.Thefirstcomplianceperiodcovering2021concludedinSeptember,withacompliancerateof98%intermsofsurrenderedallowances.

Kazakhstan:InJuly,anewNationalAllocationPlanfor2022-2025wasapproved,estab-lishingacapof163.7MtCO2for2023.

Montenegro:TheoperationoftheMontenegroETSwasnegativelyaffectedbyseveralchangesofgovernmentthroughout2022,whichcausedmajordelaysintheadoptionoftheannualallocationplan.Thegovernmentsetupaworkinggroupmid-yeartoreviewthecountry’sclimatelegislation,includingtheETS.ThisworkisstillongoingasofJanuary2023,withtheadoptionoftherevised“ETSDecree”and“ClimateLaw”expectedbyApril2023.

Sakhalin(Russia):InMarch,a“FederalLawonConductinganExperimenttoLimitGHGEmissionsinSelectedFederalStatesoftheRussianFederation”wasapprovedinitsfinalreading,introducingmandatoryemissionsreportingandverificationrequirementsforregulatedentitiesintheSakhalinregionandobligingthemtocomplywiththeallocatedemissionsallowances.Thelawalsosetsalegalbasisfor“allowancecirculation”.AsamandatoryschemetoregulateGHGemissions,theSakhalinpilotETSwasmeanttolaunchinSeptemberbuthasbeendelayedpendingcap-settingandallowanceallocationprocesses.

Switzerland:AmarketstabilitymechanismwasintroducedintheSwissETS.Duetoalargenumberofallowancesincirculation,theauctionvolumewasreducedby50%.Arevisionofthe“CO2Act”thatcoverstheperiod2025-2030isinprocess.

Türkiye:TürkiyehelditsfirstClimateCouncilmeetingwithparticipationbypublicandprivateinstitutionsandNGOs.TheCouncil’srecommendationsincludedthelaunchofapilotETSin2024toalignthedevelopmentofanationalETSwiththecountry’s2053netzerotarget.TheserecommendationswerereflectedinTürkiye’sMedium-TermProgramfor2023-2025and,followingapprovalfromthepresident,publishedintheOfficialGazette.

TableofContents

1PractitionerInsights

2Infographics

3Factsheets

4AboutICAP

9

ExecutiveSummaryICAPStatusReport2023

Ukraine:ThedesignprocessoftheUkrainianETShasbeenseverelyimpactedbytheRussianwarofaggression,makingitimpossibletofinalizethedraftinstrumentsforcap-settingandallowanceallocationdevelopedduringtheyear.Astakeholderengagementprocesswasneverthelesscarriedoutandfinalizedinearly2023.

UnitedKingdom:TheUKlaunchedamajorconsultationonschemereformsaddressingseveralissues,includinghowtoalignthecaptrajectorywiththecountry’snetzerotargetandexpandingthescheme’ssectoralcoverage.Aninitialresponsewithchangestobeimple-mentedfrom2023waspublishedinAugust,whilethefullresponseisexpectedin2023.

NORTHAMERICA

California:InDecember,theBoardoftheCaliforniaAirResourcesBoard(CARB)adoptedthestate’s"Final2022ScopingPlan",whichestablishesthestrategytomeetCalifornia’semissionsreductiontargets.Inlightoftheadditionalemissionsreductionsnowex