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Emissions trading --- Emissions trading.

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Emissions trading.

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Carbon pricing should be a central element of climate mitigation strategies, helping countries transition to 'net zero' greenhouse gas emissions over the next three decades. Policymakers considering introducing or scaling up carbon pricing face technical choices between carbon taxes and emissions trading systems (ETSs) and in their design. This includes administration, price levels, relation to other mitigation instruments, use of revenues to address efficiency and distributional objectives, supporting measures to address competitiveness concerns, extension to broader emissions sources, and coordination at the global level. Political economy considerations also affect the choice and design of instruments. This paper discusses such issues in the choice between and design of carbon taxes and ETSs, providing guidance, broader considerations, and quantitative analyses. Overall, carbon taxes have significant practical advantages over ETSs (especially for developing countries) due to ease of administration, price certainty to promote investment, the potential to raise significant revenues, and coverage of broader emissions sources-but ETSs can have significant political economy advantages.

Emissions trading.

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Emissions trading.

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Important mitigation outcomes and other co-benefits could be at reach if rural communities and policy makers in low- and middle-income economies overcame the obstacle of access to finance in the livestock sector. The traditional sources of financing have long been difficult to access for livestock smallholders who often do not hold collateral except for their animals and have little experience of working with financial institutions. Traditional lenders see the livestock sector as overly risky, with little potential for significant profits, leaving them largely uninterested. Expanding financial inclusion would improve livelihoods, increase resilience, and help reduce GHG emissions. Innovative approaches to financing for the livestock sector are needed. In a sector that plays an essential economic role for some 60% of rural households, including 1.7 billion people and contributes up to half of agricultural GDP, reducing carbon emissions while maintaining livelihoods and reducing poverty is essential. This report identifies investment opportunities for increasing climate finance in the sector and drive its sustainable transformation.

Emissions trading.