Is a carbon market the only mechanism that members are employing to tackle climate change?
No. In terms of emissions reductions, a carbon market is an important tool for encouraging lowest-cost emissions reductions in many sectors, including those responsible for a large proportion of global greenhouse gas emissions. Carbon markets provide continuing incentives to reduce emissions at the lowest cost and to deploy innovative approaches. However, regulatory action, voluntary approaches, and other market-based solutions may be more appropriate in certain circumstances. All ICAP members use additional emissions reductions policies to complement their carbon markets. As the regions and countries covered differ in many ways, the policies vary across ICAP members and include, for example; local air quality standards, vehicle emissions and fuel efficiency standards, direct funding for investment in new low-carbon technologies, fuel and other taxes, voluntary agreements with industry, energy efficiency standards for buildings and appliances, renewable portfolio standards and feed-in
