This special issue of the Climate Policy journal 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 CO2 emissions 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 12,000 installations across the European Union, corresponding to approximately 46% of the total EU CO2 emissions. The EU ETS represents a significant development in working at an international level to combat dangerous climate change. The EU Emissions Trading Scheme presents a comprehensive and insightful analysis of the EU ETS, written by international experts in the field. The publication includes the latest research on emissions credits, the interaction of the trading scheme with national energy policies and the debate on future expansion.
Table of Contents
Editorial: EU Emissions Trading * Policy Brief: The EU ETS * Price Determinants in the EU Emissions Trading Scheme * The Role of Auctions and Forward Markets in the EU ETS * The Cost of Sectoral Differentiation in the EU ETS * Allocation of Carbon Emissions Certificates in the Power Sector * The Interaction of the EU ETS and National Energy Policies * The Choice of Multiple or Single Auctions in Emissions Trading * Value and Risks of Expiring Carbon Credits from Afforestation and Reforestation Projects under the CDM * Allowance Allocation in the EU ETS: A Commentary * Business Perspectives on the EU ETS *
Axel Michaelowa is head of the international climate policy research programme at the Hamburg Institute of International Economics, Germany and associate editor of the Climate Policy journal. Sonja Butzengeiger works at the Hamburg Institute of International Economics, Germany. The editor-in-chief of Climate Policy is Michael Grubb, Visiting Professor at Imperial College London and Associated Director on Policy at the Carbon Trust, UK