Governments raised a record $63 billion from emissions allowance sales last year

Governments around the world raised a record $63 billion (CZK 1.4 trillion) last year from selling emissions allowances through emissions trading systems. That was 6.8 percent more than the previous year. Many countries stepped up their ambitions to cut air pollution despite record-high energy prices following Russia’s invasion of Ukraine. This is according to a report by the International Carbon Action Partnership (ICAP), an intergovernmental forum.

Many countries and regions have launched emissions trading systems (ETS) to put a price on carbon dioxide (CO2) emissions, thereby encouraging businesses to invest in low-carbon technologies. This is intended to help them meet their climate targets.

„Rather than weakening climate ambitions, the energy crisis prompted governments to accelerate the end of their dependence on fossil fuels, supported by measures such as emissions trading,“ said ICAP head Stefano De Clara.

This year, 28 emissions trading systems are expected to be operating worldwide. These ETS cover around 17 percent of global emissions.