Emerging markets double reach of world's carbon-pricing measures

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Nikkei Asia or enjoy below:

🗞️ Driving the news: Carbon-pricing systems are expanding rapidly across emerging markets, with measures now covering roughly 30% of global greenhouse-gas emissions, double the share recorded in 2020
• India, Vietnam and other economies are introducing or expanding schemes targeting heavy-emitting sectors such as steel and cement

🔭 The context: The expansion reflects growing use of carbon markets and emissions-trading systems beyond Europe and other early adopters
• India, for example, plans to bring steel into its emissions-trading system from 2027, increasing the policy focus on industrial decarbonisation in one of the world’s major manufacturing economies

🌍 Why it matters for the planet: Steel, cement and other heavy industries account for a significant share of global emissions and are difficult to decarbonise
• Extending carbon-pricing mechanisms across emerging economies could increase incentives to improve efficiency and adopt lower-carbon technologies, although the actual impact will depend on the stringency and design of each system

⏭️ What’s next: The key test will be whether new schemes translate into measurable emissions reductions without undermining industrial competitiveness
• Greater alignment between national systems could also become increasingly important as companies operate across multiple carbon-pricing regimes

📈 One stat: 30% — the approximate share of global emissions now covered by carbon-pricing measures in emerging economies, twice the 2020 level

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