Policy Options to Stabilize the Carbon Price within the European Emissions Trading System: Framework for a Comparative Analysis

2012 ◽  
Author(s):  
Stefano Clò ◽  
Susan Elizabeth Battles ◽  
Pietro Zoppoli
Keyword(s):  
Comparative Analysis ◽  
Emissions Trading ◽  
Carbon Price ◽  
Policy Options ◽  
System Framework ◽  
Trading System ◽  
Emissions Trading System

scholarly journals Rescuing EU Emissions Trading: Mission Impossible?

2014 ◽  
Vol 14 (2) ◽  
pp. 64-81 ◽  
Author(s):  
Jørgen Wettestad
Keyword(s):  
Emissions Trading ◽  
Carbon Price ◽  
Reduction Factor ◽  
Low Carbon ◽  
Short Term ◽  
Trading System ◽  
International Policy ◽  
Science Theory ◽  
Emissions Trading System ◽  
The Eu

Is rescuing the EU's emissions trading system impossible? Despite the substantial reform in 2008, subsequent problems of allowance surplus and a low carbon price have spurred new efforts to reform the system for the 2013–2020 phase. But these efforts have met resistance both among member states and in the European parliament, and the EU is struggling in its efforts to improve the ETS. This article draws on four central EU and political science theory approaches to more systematically explore why. The financial crisis and slow international policy progress have narrowed the window of opportunity that was open in 2008. Factors that could open that window again include an economic upswing, a new European commission and parliament, and new global negotiations in 2015. But even without short-term reform, the linear reduction factor will gradually tighten the system and lead to a higher carbon price.

scholarly journals Ratcheting Up Carbon Trade: The Politics of Reforming EU Emissions Trading

2017 ◽  
Vol 17 (2) ◽  
pp. 105-124 ◽  
Author(s):  
Torbjørg Jevnaker ◽  
Jørgen Wettestad
Keyword(s):  
Greenhouse Gas ◽  
Climate Policy ◽  
Emissions Trading ◽  
Carbon Price ◽  
European Parliament ◽  
Carbon Markets ◽  
Trading System ◽  
Trading Systems ◽  
Emissions Trading System ◽  
The Eu

The EU’s emissions trading system (ETS) covers almost half of its greenhouse gas emissions and has been hailed as the cornerstone and flagship of EU climate policy. In spring 2013, however, the ETS was in severe crisis, with a huge surplus of allowances and a sagging carbon price. Even a formally simple measure to change the timing of auctioning was initially rejected by the European Parliament. Two years later, a much more important, quantity-focused “market thermostat” (the market stability reserve) was adopted, and proposals for a complete ETS overhaul were put on the table. This article examines how it was possible to turn the flagship around so quickly, providing insights into the mechanisms for gradually rendering emissions trading systems more effective. Crucial changes at the EU and national levels are identified, chief among them changes in Germany and in the European Parliament. Furthermore, the quantity-based tightening mechanism discussed could be of relevance for carbon markets outside Europe.

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