Some G20 governments have made progress in shifting at least some support away from fossil fuels and increasing their taxation. This working paper has brought together examples illustrating how reforms can be enabled and implemented to align the flows of public money with the Paris Agreement and SDGs.

An emissions trading system (ETS) is a market-based mechanism that is applied to achieve emissions targets at least cost. By fixing a quantity of emissions (the cap), requiring that companies surrender one allowance for each unit of emissions generated and making the allowance tradable, a carbon market is created through which an allowance price emerges...

Emissions trading systems (ETSs) as a cost-effective instrument for emissions control in the power sector are now being implemented or considered across a diverse set of jurisdictions. However, regulation in the power sector may impede or alter the functioning of an ETS.