What if global emission trading became mandatory? [36]
Summary of the Article: Mandating a global emissions trading system (ETS) would synchronize carbon prices, accelerate least‑cost abatement, and unlock capital flows from high‑emitting to low‑cost mitigation regions. Yet success would hinge on credible caps, robust MRV (monitoring, reporting, verification), market integrity , and equity mechanisms for developing economies. Existing blueprints— EU ETS , China’s expanding ETS , Article 6 under the Paris Agreement, and sectoral mechanisms like CORSIA —show feasibility and pitfalls. For India, compulsion would intersect with the Carbon Credit Trading Scheme (CCTS) and EU CBAM exposure , demanding rapid alignment of baselines, registry, and verification, plus targeted industrial decarbonization (steel, aluminum, cement). Immediate priorities: harden data and governance, ring‑fence revenues for transition, and negotiate Article 6 rules that recognize domestic intensity‑based pathways . [climate.ec.europa.eu] , [icapcarbonaction.com] , [u...