EU Emissions Trading Scheme

Paperback  144 pp  ISBN 9781844072385      £53.00

This special issue of Climate Policy outlines the fundamentals of the new European Emissions Trading Scheme (EU ETS), assesses the strategies for and impact of implementation and highlights the scheme's potential, including positive aspects and remaining hurdles.

The EU Emission Trading Scheme (EU ETS) is the first international trading scheme for CO₂ in the world. Its aim is to reduce the cost of compliance to existing targets under the Kyoto Protocol. From 1st January 2005, companies in high-energy sectors covered by the scheme must limit their CO₂emissions to allocated levels, arranged in two periods: from 2005-2007 and 2008-2012 (to match the first Kyoto commitment period). In practice, the scheme is likely to cover over 10,000 installations across the European Union, corresponding to approximately 46% of the total EU CO₂emissions.

The EU ETS represents a significant development in working at an international level to combat dangerous climate change. This special issue presents a comprehensive and insightful analysis of the EU ETS.

Contents

• EU emissions trading: navigating between Scylla and Charybdis AXEL MICHAELOWA, SONJA BUTZENGEIGER
• The European Union Emissions Trading Scheme (EU ETS) RIE WATANABE WITH GUY ROBINSON
• Price determinants in the EU emissions trading scheme A.C. CHRISTIANSEN, A. ARVANITAKIS, K. TANGEN, H. HASSELKNIPPE
• The role of auctions and forward markets in the EU ETS: counterbalancing the cost-inefficiencies of combining generous allocation with a ban on banking KARL-MARTIN EHRHART, CHRISTIAN HOPPE, JOACHIM SCHLEICH, STEFAN SEIFERT
• The cost of sectoral differentiation in the EU emissions trading scheme STEFFEN KALLBEKKEN
• Allocation of carbon emission certificates in the power sector: how generators profit from grandfathered rights KIM KEATS MARTINEZ, KARSTEN NEUHOFF
• The interaction between the EU emissions trading scheme and national energy policies JOS SIJM
• The choice of multiple or single auctions in emissions trading SVANTE MANDELL
• Value and risks of expiring carbon credits from afforestation and reforestation projects under the CDM MICHAEL DUTSCHKE, BERNHARD SCHLAMADINGER, JENNY L.P. WONG , MICHAEL RUMBERG
• Allowance allocation in the European emissions trading system: a commentary MICHAEL GRUBB, CHRISTIAN AZAR , U. MARTIN PERSSON
• Business perspectives on the EU emissions trading scheme THOMAS L. BREWER