Accounting for the linking of emissions trading systems

The paper examines how the international linking of emissions trading systems (ETSs), which allows allowances to flow across borders and alter emission levels, should be accounted for under the Paris Agreement. Specifically, it focuses on the framework provided by Article 6.2 to ensure that such links are properly reflected in the achievement of nationally determined contributions (NDCs). The document notes that the European Union and Switzerland intend to use Article 6.2 to account for their ETS link.

• The international linking of emissions trading systems (ETSs) allows allowances to move across borders, which can subsequently alter the emission levels within the participating countries.
• Article 6.2 of the Paris Agreement provides the framework for countries to use international carbon market mechanisms, including the linking of ETSs, to meet their nationally determined contributions (NDCs).
• The European Union and Switzerland have expressed their intention to utilize Article 6.2 of the Paris Agreement to account for the link between their respective emissions trading systems.

APA

Stockholm Environment Institute (2018). Accounting for the linking of emissions trading systems. https://www.sei.org/publications/accounting-for-the-linking-of-emissions-trading-systems/

Chicago

Stockholm Environment Institute. Accounting for the linking of emissions trading systems. 2018. https://www.sei.org/publications/accounting-for-the-linking-of-emissions-trading-systems/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Accounting for the linking of emissions trading systems |date=27 November 2018 |url=https://www.sei.org/publications/accounting-for-the-linking-of-emissions-trading-systems/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2018accounting, author = {{Stockholm Environment Institute}}, title = {{Accounting for the linking of emissions trading systems}}, institution = {Stockholm Environment Institute}, year = {2018}, month = nov, url = {https://www.sei.org/publications/accounting-for-the-linking-of-emissions-trading-systems/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }