Exploring Opportunities for Linking Emissions Trading Systems among CAREC Countries: A Pathway to Sustainable Development

A CTTN Research Grant report by Dr.Giorgi Khishtovani, Dr.Nana Kajaia, and Dr.Gugula Tsukhishvili analyzes the potential for cross-border emissions trading system (ETS) integration among Central Asia Regional Economic Cooperation (CAREC) countries. By categorizing members into three economic profiles—diversified, energy-intensive industrial, and agriculture-dependent economies—the study identifies ETS linkage as a cost-effective tool to align climate action with growth agendas. Complementary partnerships could optimize marginal abatement costs (MACs), with energy-intensive economies trading credits with diversified counterparts, while agriculture-focused nations deploy sector-specific offset mechanisms.

The authors propose a phased roadmap emphasizing regulatory harmonization, standardized MRV (monitoring, reporting, verification) protocols, and a regional knowledge-sharing platform to address governance asymmetries. Such collaboration would enhance compliance with Paris Agreement Article 6 and NDC targets while mitigating carbon leakage risks. Sustained political dialogue and adaptive governance, the report argues, are critical to navigating regulatory divergences and market volatility.

By prioritizing interoperability, CAREC members could transform ETS linkage into a driver of low-carbon resilience and economic integration, turning climate commitments into actionable, regionally cohesive strategies.