Emissions Trading and Competitiveness - Allocations, Incentives and Industrial Competitiveness Under the EU Emissions Trading Scheme

Hardback  160 pp  ISBN 9781844074037      £65.00

• Tightening of CO₂ emission allocations in the EU may mean big bills for industries affected - what impacts will this have on their competitiveness?
• Leading experts analyse the consequences on competitiveness and profitability for a range of industrial sectors and the responses available to them
• First ever in-depth studies of this critical dimension of carbon emissions trading schemes

This Special Issue of Climate Policy journal examines the impacts on the competitiveness and the commercial incentives available from the CO₂ allowance allocations under the EU Emissions Trading Scheme, and discusses appropriate allocation methodologies, and whether - and if so at what stage - the ETS itself may need to be amended. The study is multidisciplinary, combining economic, legal and policy analysis, with specific studies of impacts on electricity, cement and other industrial sectors and allocation issues. It brings together the results of research conducted over the past two years from various research centres and consultancies in Europe, and in particular work commissioned by the Carbon Trust and Climate Strategies Network. Through these, it presents the most comprehensive and detailed set of analyses of allocation and competitiveness yet conducted.

Contents

• Emissions allocation, incentives and the competitiveness of European industry
• Emissions, firm profits and market prices
• CO₂ cost pass through and windfall profits in the power sector
• Allocation, incentives and distortions
• CO₂ abatement, competitiveness and the leakage in the European cement industry under the EU ETS
• Free allocation of allowances under the EU ETS € legal issues
• Auctioning of EU ETS Phase II allocations
• Differentiation and dynamics of competitiveness and abatement under the EU ETS