This publication is part of a series of sectoral briefing notes on Trade and climate scenarios on the road to 2050: Implications for developing countries and climate-resilient development. The series aims to provide an overview of current and anticipated transformations in trade on the road to 2050 in the context of the unfolding climate crisis and the international community’s climate action agenda and to discuss potential scenarios and implications for developing countries and sustainable development.
This sectoral briefing note looks at carbon markets. It introduces three types of carbon markets—compliance markets, voluntary markets, and emerging multilateral approaches to carbon markets under the Paris Climate Agreement Article 6—and discusses trade-related issues, notably competitive effects of carbon markets. It also looks at recent steps and issues facing developing countries.
The briefing notes in the series—covering sectors ranging from agriculture to critical minerals, digital trade, fossil fuels, fisheries, heavy industries, renewable energy, textiles, tourism, and transport—will inform a final report to be released in the coming months.
This briefing note and the series will help contribute to a better understanding of emerging trade and trade policy trends and dynamics and their implications within the various sectors, thereby supporting developing countries in identifying and advancing their climate and trade-related interests and priorities in international discussions.
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Recommended citation: Vaughan, S. (2024). Carbon Markets – Trade, Climate, and Net Zero Pathways: Scenarios and Implications for Developing Countries and Climate-Resilient Development. Forum on Trade, Environment, & the SDGs (TESS).
