Global Carbon Market Simulator
Explore how international permit trading changes the modeled cost of reaching the same emissions target.
Target path
Linear decline to net zero in 2050
Coverage
Nine GCAM regions
Cost measure
Area under regional MACCs
All scenarios use GCAM 9.1 outputs and a 2% land social discount rate. Permit payments redistribute costs between regions and sum to zero across the market.
Target in selected model year
60% of BAU emissions remain
Allocation settings
Custom free permits
Set each region's free permits as a percentage of its BAU emissions. The balancing region is calculated automatically so that total allocations equal the market cap. Negative values represent a permit obligation.
Market comparison
Annual abatement cost
Trading lowers the modeled cost of the 2035 target by $133bn per year.
Regional distribution
Net regional cost
Domestic abatement cost after permit purchases or receipts. Negative values indicate that receipts exceed domestic abatement cost.
Underlying results
Regional detail
| Region | Domestic cost | Permit flow | Net cost | Emissions |
|---|
Cumulative results
Since 2025, in billion 2025 USD, undiscounted.
Undiscounted totals assume zero additional abatement cost in 2025 and linear changes in annual costs between model years. These estimates reuse the existing year-specific MACCs; they do not recalculate investment or land-use history for a new policy path. Free permit allocation redistributes regional costs and does not change these totals.