This brief explores the different types of market-based climate mitigation policies being implemented across five different emerging economies: China, India, Brazil, South Africa and South Korea. Market-based policies work through raising the costs of emitting greenhouse gases and/or reducing the costs of producing or consuming lower emitting alternatives. In adjusting incentives, these policies are designed to change the behaviour of companies and individuals so that supply and demand can be directed toward low emission strategies. Each of the countries have pledged to reduce emissions, though methods of measurement (China and India measure emissions per unit of GDP, while the rest measure against predicted business-as-usual levels) and scope of target varies (spanning between 30 to 45 per cent by 2020).Findings include a number of commonalities, including a preference for incentives, such as removing financial barriers to mitigation actions, over disincentives such as higher taxes and restricted lending. There is also a clear preference for investing in renewable energy, for a number of interlocking reasons: climate change mitigation, diversifying energy production, energy security, improving health, meeting increasing demand, reducing pollution, etc. The brief notes that significant groundwork and monitoring is required for the implementation of these complex policies, which are prone to evolution (this is especially true of trading strategies, such as cap-and-trade).The brief reports on each of the countries in depth. Some of the policies highlighted include the following.

Brazil: preferential financing for ethanol-based electricity production and guaranteed tariffs for electricity from renewable sources.
China: regional cap-and-trade is currently in pilot stage, with the aim of achieving a national, unified energy system around 2015.
India: the Perform, Achieve and Trade scheme, which covers eight energy-intensive areas and uses carbon trading, mandatory reduction targets and penalties to reduce emissions.
South Africa: a range carbon taxes, rising over time, aimed at emissions, goods and energy production.
South Korea: long-running and significant subsidies for renewable energy and the removal of environmentally harmful subsidies.