2.1.4 Existing Carbon Pricing Schemes (World)

The Regional Greenhouse Gas Initiative

A ten-state compact (as of July 2020) among mostly Northeastern states to cap carbon emissions from the power sector and use permit auction proceeds to spur clean energy development.

Western Climate Initiative

California and Quebec linked their cap and trade systems under the Western Climate Initiative in 2014.

Saitama’s Emissions Trading Scheme

Established in April 2011 as part of the Saitama Prefecture Global Warming Strategy Promotion Ordinance. Large buildings and factories in Saitama are required to reduce emissions by 15% or 13% in its second compliance period (FY2015-2019).

Tokyo’s Emissions Trading Scheme

Launched in 2010 as Japan’s first mandatory ETS. Under the ETS, large offices and factories are required to reduce emissions by 15% or 17% in its second period (FY2015-FY2019). The target in the third period (FY2020-2024) is expected to be 25% or 27%

New Zealand Emissions Trading Scheme

Originally designed to cover the whole economy, it has the broadest sectoral coverage of any ETS, including forestry as a source of both emissions and units.

British Columbia’s Carbon Tax

Tax beginning at $10 CAD per ton of CO2e emissions, and ramping up to its current rate of $30 CAD, applying to 20 classes of fossil fuels and other specified combustibles

Canadian Federal Carbon Tax

A coordinated nation-wide carbon price for all provinces without their own carbon pricing mechanism, beginning at $20 per ton of CO2e in 2019 and rising to $50 per ton.