ETS FUNDAMENTALS
The mechanics behind the market
Background reading on ETS policy, market mechanics, and India CCTS — short, plain-language explainers that pair with the simulator.
Learning Academy
Annotated reading list of carbon-market reports
Curated reports with original commentary on what they say and why they matter.
ETS Design
Absolute Cap
A hard limit on total emissions across all regulated entities.
Free Allocation
Allowances handed to firms at no cost, typically based on historical emissions or output.
Intensity vs Absolute: Is One Inherently Better?
Why the two designs are the same instrument when output is known, why they only diverge under output uncertainty, and why a well-set intensity benchmark can beat a rising absolute cap.
Intensity-Based Target
Emissions limits set relative to output, not as a hard total.