TWN Info Service on Climate Change (Jul26/04)
14 July 2026
Third World Network

Dear friends,

Lessons from the EU ETS for developing countries

A new TWN Briefing Paper looks at how the operation of the European Union’s Emissions Trading System (ETS), seen as a pioneer in decarbonization initiatives, may offer lessons for developing countries seeking to establish their own carbon pricing mechanisms. It points to the risk that the ETS could undermine EU industrial competitiveness even as it falls short of delivering robust emissions reductions. In light of such concerns, the paper suggests that developing countries consider carbon pricing schemes that strike a balance between competitiveness and climate action, while taking into account industrial growth prospects, ground realities and national priorities.

The Briefing Paper, “Lessons from the EU ETS for developing countries” by Sangeeta Godbole, is available at https://twn.my/title2/briefing_papers/twn/Lessons%20EU%
20ETS%20TWNBP%20Jul%202026%20Godbole.pdf

With best wishes,
Third World Network