Research on ETS, Emission Trading System

Greenhouse gas (GHG) emissions have a significant impact on climate change and pose significant pressure on achieving the Sustainable Development Goals (SDGs). To tackle this problem, various strategies have been developed, including policy reinforcement, statutory legislation, technological transformation, and more.   The Emission Trading System (ETS) is a market-based instrument that utilizes economic incentives, specifically a carbon pricing mechanism, to encourage industrial transformation towards a net-zero future. This system is the focus of my research. What the system is, how the system works, who’s being regulated, which sectors and GHG are regulated, where’s the regulatory point in the industrial supply chains and so on, are the questions I’m exploring through this preliminary research procedures.   Through desktop research on the functionality and establishment procedures of the ETS and a case study on the sale of carbon credits at UIUC, I acquired a comprehensive understanding of the system. I developed visual deliverables and identified various opportunities to rethink, redesign, and reinforce the system, which will be explored further in my future research.