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Carbon Markets in a <2 °C World

What Role May International Carbon Trading Play in, up to and beyond 2050?

This policy paper is an updated Version of the 2016 policy paper "Carbon Markets in a <2 °C World: Will There Be Room for International Carbon Trading in 2050?", which concluded carbon markets would not be obsolete in 2050 and international carbon trading will play a role in the global effort to mitigate anthropogenic climate change.

This policy paper extends and updates that analysis in terms of both the time frame and the sectors examined. While the previous version focused on energy-related emissions, this analysis considers additional sectors including nature-based solutions.


Obergassel, W.; Hermwille, L.; Jüde, F.; Samadi, S.; Röhnelt, A.: Carbon Markets in a <2 °C World: What Role May International Carbon Trading Play in, up to and beyond 2050? Carbon Mechanisms Research Policy Paper 03/2021. Wuppertal Institut for Climate, Environment and Energy. 32 Pages. URL: www.carbon-mechanisms.de/en/Carbon_Markets_2050 

Date: November 2021

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