Carbon Markets
Carbon Taxation and ETS
Designing and implementing carbon taxes and emissions trading systems
About this course
Why this course exists
A comprehensive guide to carbon pricing policy based on World Bank, ICAP, and OECD frameworks. Covers the economic rationale, carbon tax design, emissions trading system mechanics, instrument choice, impact management, and global implementation. Draws from official handbooks used by policymakers worldwide.
What you will learn
After this course you will be able to
- Apply the frameworks, standards, and methodologies covered in this course to real practitioner work
Course content
13 modules · 65 lessons
Walk through the modules in order or jump to a specific lesson. Each lesson is a real chapter you can open and start reading immediately.
Module 1·5 lessons
Carbon Pricing Fundamentals
Why put a price on emissions?
- 0.16 min read
The Economic Case for Carbon Pricing
PMR Assessment Guide Ch 1.1; Carbon Tax Guide Ch 2
- 0.27 min read
Carbon Pricing Instruments: Taxes vs Trading Systems
PMR Assessment Guide Ch 1.2; ETS Handbook Synthesis
- 0.36 min read
Carbon Pricing in the Policy Mix
PMR Assessment Guide Ch 1.3-1.4
- 0.46 min read
Global Adoption: 75 Instruments and Counting
State and Trends 2024 Ch 1-2; OECD ECR 2024
- 0.56 min read
The FASTER Principles for Successful Carbon Pricing
Carbon Tax Guide Box 1; ETS Handbook Box 1-5
Module 2·6 lessons
Carbon Taxes: Design Fundamentals
How to design a carbon tax
- 1.16 min read
How Carbon Taxes Work
Carbon Tax Guide Ch 2.2; PMR Assessment Guide Ch 1.2.1
- 1.26 min read
Defining the Tax Base: Scope and Coverage
Carbon Tax Guide Ch 5.1-5.2
- 1.37 min read
Point of Regulation: Upstream vs Downstream
Carbon Tax Guide Ch 5.2; PMR Assessment Guide Fig 4
- 1.47 min read
Setting the Tax Rate: Levels and Trajectories
Carbon Tax Guide Ch 6.2-6.3
- 1.57 min read
The Social Cost of Carbon
Carbon Tax Guide Box 16; PMR Assessment Guide Ch 1.3.2
- 1.67 min read
Administration and MRV for Carbon Taxes
Carbon Tax Guide Ch 5.3, 9.3
Module 3·4 lessons
Carbon Tax Revenue Use
What to do with carbon tax revenues
Module 4·5 lessons
Emissions Trading Systems: Core Mechanics
How cap-and-trade works
- 3.17 min read
How Emissions Trading Works
ETS Handbook Synthesis; PMR Assessment Guide Ch 1.2.2
- 3.27 min read
Deciding the Scope: Sectors, Gases, and Thresholds
ETS Handbook Step 3
- 3.36 min read
Setting the Cap: Top-Down vs Bottom-Up
ETS Handbook Step 4
- 3.47 min read
Cap Trajectories and Ambition Ratchets
ETS Handbook Step 4; Fig 4-2, 4-3
- 3.56 min read
MRV for Emissions Trading
ETS Handbook Step 7; Table 7-2
Module 5·4 lessons
ETS Allowance Allocation
Who gets allowances and how
- 4.16 min read
Auctioning vs Free Allocation
ETS Handbook Step 5
- 4.26 min read
Free Allocation Methods: Grandfathering and Benchmarking
ETS Handbook Step 5; Table 5-1
- 4.36 min read
Updating Allocations Over Time
ETS Handbook Step 5; Fig 5-1
- 4.46 min read
Auction Design and Revenue Use
ETS Handbook Step 5, Step 6
Module 6·5 lessons
ETS Market Operations
Making markets work
- 5.16 min read
Trading Infrastructure and Registries
ETS Handbook Step 6
- 5.26 min read
Banking and Borrowing
ETS Handbook Step 6; Fig 6-2, 6-3
- 5.36 min read
Price Stability Mechanisms (PSAMs)
ETS Handbook Step 6; Table 6-1
- 5.46 min read
Price Floors and Ceilings
ETS Handbook Step 6; Fig 6-4, 6-5
- 5.55 min read
Market Stability Reserves: The EU Example
ETS Handbook Fig 6-6; EU MSR Decision
Module 7·5 lessons
Choosing the Right Instrument
Carbon tax or ETS?
- 6.16 min read
Carbon Tax vs ETS: A Systematic Comparison
PMR Assessment Guide Table 1; Carbon Tax Guide Box 2
- 6.26 min read
Jurisdictional Context Assessment
PMR Assessment Guide Ch 2; Attachment 2
- 6.36 min read
Capacity Requirements for Each Instrument
PMR Assessment Guide Ch 2.3; Attachment 4
- 6.45 min read
Hybrid Approaches: Using Both Instruments
PMR Assessment Guide Ch 1.2.4; Box 2 (Mexico)
- 6.55 min read
Case Study: Singapore's Carbon Tax Decision
PMR Assessment Guide Box 14
Module 8·6 lessons
Managing Impacts
Competitiveness, leakage, and equity
- 7.15 min read
Understanding Carbon Leakage
Carbon Tax Guide Ch 7.2; ETS Handbook Step 5
- 7.26 min read
Assessing Competitiveness Risks
Carbon Tax Guide Ch 7.3; PMR Assessment Guide Ch 3
- 7.35 min read
Mitigation Measures: Free Allocation and Exemptions
Carbon Tax Guide Ch 7.4; ETS Handbook Table 5-4
- 7.46 min read
Border Carbon Adjustments
Carbon Tax Guide Box 19; EU CBAM
- 7.56 min read
Distributional Impacts on Households
PMR Assessment Guide Ch 3.2; Carbon Tax Guide Ch 7.2
- 7.65 min read
Designing Measures for a Just Transition
Carbon Tax Guide Ch 8.3; PMR Assessment Guide Box 10
Module 9·5 lessons
Implementation and Governance
Making it work in practice
- 8.15 min read
Stakeholder Engagement Strategy
ETS Handbook Step 2; Communicating Carbon Pricing Guide
- 8.25 min read
Building Institutional Capacity
PMR Assessment Guide Attachment 4; ETS Handbook Step 1
- 8.35 min read
Legal and Regulatory Frameworks
ETS Handbook Step 7; Fig 7-2, 7-3
- 8.45 min read
Compliance and Enforcement
Carbon Tax Guide Ch 9.4; ETS Handbook Table 7-3
- 8.55 min read
Communicating Carbon Pricing
Communicating Carbon Pricing Guide; ETS Handbook Box 2-5
Module 10·4 lessons
Offsets and Crediting
Carbon credits in pricing systems
- 9.15 min read
The Role of Carbon Crediting Mechanisms
PMR Assessment Guide Ch 1.2.3; ETS Handbook Step 8
- 9.25 min read
Designing Offset Provisions
ETS Handbook Step 8; Table 8-1, 8-2
- 9.35 min read
Quality and Integrity of Credits
ETS Handbook Step 8; Fig 8-3, 8-4
- 9.44 min read
Quantitative and Qualitative Restrictions
ETS Handbook Step 8
Module 11·6 lessons
Global Carbon Pricing Landscape
Systems around the world
- 10.15 min read
Global Coverage and Price Levels
State and Trends 2024 Ch 1-2; OECD ECR 2024
- 10.24 min read
The EU Emissions Trading System
ETS Handbook EU Case Studies; State and Trends 2024
- 10.34 min read
China's National ETS
State and Trends 2024; ETS Handbook Box 2-9
- 10.44 min read
North American Systems: California, RGGI, and Canada
ETS Handbook California Cases; State and Trends 2024
- 10.54 min read
Carbon Taxes: British Columbia, Sweden, and Beyond
Carbon Tax Guide Appendix; State and Trends 2024
- 10.64 min read
Emerging Markets: Developing Country Systems
PMR Assessment Guide Ch 1.5; State and Trends 2024
Module 12·5 lessons
Advanced Topics
Linking, Article 6, and corporate pricing
- 11.14 min read
Linking Carbon Markets
ETS Handbook Step 9
- 11.24 min read
Types of Links and Design Considerations
ETS Handbook Step 9; Table 9-1, 9-2, 9-3
- 11.34 min read
Article 6 and International Carbon Markets
PMR Assessment Guide Ch 1.2.3; ETS Handbook Step 9
- 11.44 min read
Internal Carbon Pricing by Companies
CDP Internal Carbon Pricing Report; WRI Guide
- 11.57 min read
Evaluation, Review, and Continuous Improvement
Carbon Tax Guide Ch 10; ETS Handbook Step 10
Module 13·5 lessons
Making the Recommendation
From analysis to decision
- 12.16 min read
Impact Assessment Approaches
PMR Assessment Guide Ch 3; Carbon Tax Guide Ch 4
- 12.26 min read
Economic Modeling for Carbon Pricing
Carbon Tax Guide Ch 4.3-4.6; PMR Attachment 5
- 12.36 min read
Synthesizing Evidence for Decision-Makers
PMR Assessment Guide Ch 4
- 12.46 min read
Writing the Recommendation Paper
PMR Assessment Guide Attachment 7
- 12.58 min read
Political Economy and Stakeholder Buy-In
Carbon Tax Guide Box 11; ETS Handbook Step 2