Understanding barriers to linking heterogeneous emissions trading schemes: evidence from and lessons for Northeast Asia

Thus far, attempts to link the emissions trading schemes (ETS) of countries with heterogenous climate policies have failed. Despite the adoption in Glasgow of a long-awaited rulebook for Article 6 of the Paris Agreement, heterogeneous linking remains politically challenging to achieve – but why is this? We explore this question, with a focus on Northeast Asia. We surveyed Chinese, Japanese and Korean experts involved in negotiating the Paris Agreement Article 6 Rulebook, to test how feasibility, confidence and willingness affect the specifics of linking in the region. Our results reveal differences in perceptions among countries and subcategories of agents involved in the policy process. We identify three different political barriers to linking in Northeast Asia: an institutional resistance barrier, predicated on administrative challenges; a governance-sharing barrier, which reflects the difficulties of resolving complex sovereignty questions; and an environmental integrity barrier, based on a lack of confidence between partners in the region.