Global electricity-carbon market nexus: A systematic review of synergistic efforts towards a net-zero power sector

Wang, Jingbo, Wen, Jianfeng, Long, Chao ORCID: 0000-0002-5348-8404, Yang, Bo and Jiang, Lin ORCID: 0000-0001-6531-2791 (2026) Global electricity-carbon market nexus: A systematic review of synergistic efforts towards a net-zero power sector APPLIED ENERGY, 402. 126992-. ISSN 0306-2619, 1872-9118

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Abstract

Climate change remains a critical global challenge, with power generation as the leading contributor to carbon dioxide emissions. Achieving the net-zero target demands not only a profound transformation of the power sector but also the effective synergy of electricity and carbon markets. Electricity‑carbon synergy contributes to optimizing resource allocation and promoting green economic transformation with advancements in renewable energy and smart grid technologies. This study follows the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol to conduct a systematic review. It analyzes the nexus between electricity and carbon markets from a global perspective, examining their synergistic efforts to promote decarbonization in the power sector. A structured analytical framework is applied to assess the development and characteristics of electricity and carbon markets worldwide. Studies on electricity‑carbon synergy are categorized by geographic region and evaluated using eleven key indicators, including covered sectors, models, methodologies, policy relevance, emission targets, identified strengths, and limitations. Internal and external factors influencing electricity‑carbon synergy are assessed within a broader techno-socio-economic-political framework, identifying challenges and providing practical suggestions. This review combines a global comparative perspective with a multi-dimensional indicator framework, a synergy stage classification, and a comparative review of representative modeling approaches. The findings provide strategic insights and practical policy guidance for enhancing the design and implementation of integrated electricity‑carbon market mechanisms, thereby supporting the development of net-zero power systems.

Item Type:	Article
Uncontrolled Keywords:	Electricity-carbon synergy, Net-zero emissions, Power sector decarbonization, Emissions trading system, Electricity market, Carbon market
Divisions:	Faculty of Science & Engineering Faculty of Science & Engineering > School of Engineering Faculty of Science & Engineering > School of Engineering > Electrical Engineering and Electronics
Depositing User:	Symplectic Admin
Date Deposited:	17 Nov 2025 10:22
Last Modified:	16 Jun 2026 20:24
DOI:	10.1016/j.apenergy.2025.126992
Related Websites:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3195427
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