What are the major carbon trading schemes around the world?

There are several major carbon trading schemes around the world that aim to reduce greenhouse gas emissions and combat climate change. Some of the prominent ones include:

1. European Union Emissions Trading System (EU ETS): Established in 2005, the EU ETS is the largest carbon market globally. It covers various sectors, including power generation, manufacturing, and aviation, within the European Union. Participants are allocated emission allowances, which can be traded among themselves. The scheme has undergone several phases and reforms to enhance its effectiveness.

2. California Cap-and-Trade Program: Implemented in 2013, this scheme covers multiple sectors in California, including electricity generation, industrial processes, and transportation. It sets a cap on emissions and allows companies to trade allowances. The program has been successful in reducing emissions while promoting clean energy investments.

3. Regional Greenhouse Gas Initiative (RGGI): This is a market-based program implemented by ten northeastern U.S. states. It focuses primarily on the power sector and sets a cap on emissions from power plants. Allowances are auctioned, and the revenue generated is invested in energy efficiency and renewable energy projects.

4. Kyoto Protocol's Clean Development Mechanism (CDM): Under the Kyoto Protocol, the CDM allows developed countries to invest in emission reduction projects in developing countries. These projects generate Certified Emission Reductions (CERs), which can be traded and used by developed countries to meet their emission reduction targets.

5. China's Emission Trading Scheme (ETS): China, the world's largest emitter of greenhouse gases, has been piloting regional carbon trading schemes since 2013. It plans to launch a nationwide ETS, covering multiple sectors, to help achieve its climate goals.

6. New Zealand Emissions Trading Scheme (NZ ETS): Implemented in 2008, this scheme covers various sectors, including energy, industrial processes, and waste. Participants can trade emission units, and the scheme aims to incentivize emission reductions and promote sustainable practices.

These are just a few examples of major carbon trading schemes around the world. Each scheme has its own design, coverage, and objectives, but they all share the common goal of reducing carbon emissions and mitigating climate change.