Global electricity-carbon market nexus: A systematic review of synergistic efforts towards a net-zero power sector
Jingbo Wang, Jianfeng Wen, Chao Long, Bo Yang, Jiang Lin
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.