According to the approval under state aid law of the Carbon Leakage Ordinance of the Fuel Emission Trading Act (BECV) by the European Commission (State Aid SA.63191 (2023/N)), a comprehensive evaluation of the regulation is required by 2028. The aim of this evaluation is to examine the effectiveness of the BECV in terms of avoiding carbon leakage while maintaining competitiveness, promoting investment in energy efficiency and climate protection measures, and achieving these objectives in a cost-effective manner. The underlying progress report, which was submitted to the Commission in 2024 as requested in the aforementioned authorization, develops the conceptual and methodological foundations for this evaluation presenting a robust empirical research design. Veröffentlicht in Climate Change | 36/2025.
The uncertainty surrounding the future of existing carbon markets in recent years has prevented valuable resources from being channeled to low-carbon investments, particularly from the private sector. Additionally, the prospect of a coordinated international approach to carbon pricing will remain uncertain for several years. However, the report reveals, that regional, national and sub-national carbon pricing initiatives are proliferating. Despite weak international carbon markets, both developed and developing countries are mainstreaming carbon pricing initiatives in national climate change and development strategies. This report prepared by the World Bank together with Ecofys, replaces the State and Trends of the Carbon Market series. Unlike in previous years, the report does not provide a quantitative, transaction-based analysis of the international carbon market as current market conditions invalidate any attempt and interest to undertake such analysis. The development of national and sub-national carbon pricing initiatives in an increasing number of countries calls for a different focus. This report maps existing and emerging carbon pricing initiatives around the world, hence its new title. It analyses common considerations across the initiatives, such as setting the appropriate ambition level, implementing price stabilization mechanisms, using offsets, and taking concrete moves towards linking schemes together. Feel free to watch below webcast by Alyssa Gilbert to familiarise yourself with the main outcomes of the study.