The impact of emissions trading systems on technological innovation for climate change mitigation: a systematic review

Key policy insights The European Union ETS (EU ETS) and China ETS (CN ETS) pilots have generally provided positive and statistically significant incentives for multiple stages of technological innovation for climate change mitigation (TICCM). The incentives from the EU ETS and CN ETS pilots for TICCM remain moderate. Achieving climate goals will require enhancing the effectiveness of ETS-driven innovation incentives. The effectiveness of ETS incentives varies across regions and sectors. Sector- or region-specific adjustments are necessary to broaden the impact of these incentives. Collaboratively enhancing the stringency and reducing the uncertainty of the ETSs is a critical avenue for boosting incentives for TICCM.