scholarly journals Options to Continue the EU ETS for Aviation in a CORSIA-World

2019 ◽  
Vol 11 (20) ◽  
pp. 5703 ◽  
Author(s):  
Maertens ◽  
Grimme ◽  
Scheelhaase ◽  
Jung
Keyword(s):  
European Economic Area ◽  
Eu Ets ◽  
Monitoring Methods ◽  
Net Benefit ◽  
Environmental Effectiveness ◽  
Equivalent Measure ◽  
Economic Perspectives ◽  
Emission Growth ◽  
Trading Scheme ◽  
The Eu

From 2021, an increasing percentage of the carbon emission growth in international air transport will be subject to offsetting under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Presently, it is still unclear if, and how, the existing EU emissions trading scheme (ETS) for aviation will continue. We assess the environmental impacts of different options (not) to continue with the EU ETS for aviation alongside CORSIA, and also discuss resulting monitoring, reporting, and verification (MRV) requirements. Our results indicate that any form of continuation of the EU ETS would have positive environmental effects especially in the early 2020s, when the coverage and environmental impact of CORSIA, which only tackles any post-2020 emission growth in international aviation, will still be low. If, moreover, a certain failure of CORSIA Certified Emission Reductions (CERs) to actually achieve emission reduction elsewhere is assumed, the environmental net benefit of CORSIA will be even lower. From both the policy and economic perspectives, these aspects may further strengthen the need to continue with the EU ETS for aviation. Possible options are to maintain the EU ETS in operation for domestic flights only, as a complement to CORSIA, or to keep it alive even for international flights within the European Economic Area (EEA), replacing CORSIA there as an equivalent measure. Another option to increase the environmental effectiveness of CORSIA, at least to some extent, could be to voluntarily extend it to domestic EEA flights. Administrative-wise, the CORSIA MRV system could be applied to a continued EU ETS to reduce transaction costs and to assure globally similar or even identical MRV standards, e.g., with regard to exemptions and eligible fuel monitoring methods.

Market efficiency and the basis in the European Union Emissions Trading Scheme

2014 ◽  
Vol 41 (4) ◽  
pp. 615-628 ◽  
Author(s):  
Andros Gregoriou ◽  
Jerome Healy ◽  
Nicola Savvides
Keyword(s):  
Emissions Trading ◽  
Eu Ets ◽  
The European Union ◽  
Content Type ◽  
Spot Prices ◽  
Emissions Trading Scheme ◽  
Cost Of Carry ◽  
Trading Scheme ◽  
The Cost ◽  
The Eu

Purpose – The purpose of this paper is to investigate the validity of the cost of carry model by examining the time series properties of the deviation between future and spot prices in the European Union Emissions Trading Scheme (EU-ETS) over the time period 2005-2012. The paper utilizes a non-linear mean reverting adjustment mechanism, and discovers that although deviations of future from spot prices can exhibit a region of non-stationary behaviour, overall they are stationary indicating market efficiency in the trading of carbon permits. Design/methodology/approach – The methodology involves non-linear mean reverting unit root tests. Findings – The findings provide insights into the functioning of the EU-ETS market. They suggest that it is informationally efficient and does not permit arbitrage between spots and futures. Originality/value – The authors are the first study to examine efficiency in the EU-ETS by investigating the validity of the cost of carry model. The authors are also the only study to look at efficiency in both Phase I and Phase II of the scheme.

scholarly journals Derechos de emisión temporales procedentes de actividades de forestación y reforestación en el EU ETS

2011 ◽  
Vol 7 (14) ◽  
pp. 21
Author(s):  
Ignacio Bachiller Méndez ◽  
José Luis Fernández-Cavada Labat ◽  
Jaime Martín Juez
Keyword(s):  
Climate Change ◽  
European Union ◽  
Future Development ◽  
Clean Development Mechanism ◽  
Emissions Trading ◽  
Eu Ets ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
Flexible Mechanisms ◽  
The Eu

The authors have assessed the regulatory framework set by the UNFCCC (United Nations Frame Convention on Climate Change), the Kyoto Protocol and its Flexible Mechanisms, including the CDM (Clean Development Mechanism), and the EU ETS (European Union Emissions Trading Scheme). After this general overview, the article shows how afforestation and reforestation activities have been incorporated into the CDM process and its current consideration under the EU ETS. Transaction costs of these types of CDM project activities are analyzed, together with the state of the temporary allowances market. Finally, taking into account the above mentioned elements, the authors draw several conclusions on the opportunity and expectations of the future development of this market.

scholarly journals Absolute vs. Intensity-based Caps for Carbon Emissions Target Setting

2016 ◽  
Vol 7 (4) ◽  
pp. 764-781 ◽  
Author(s):  
Yingying Zeng ◽  
Stefan E. Weishaar ◽  
Oscar Couwenberg
Keyword(s):  
Policy Design ◽  
Policy Implications ◽  
Eu Ets ◽  
The European Union ◽  
Trading System ◽  
Target Setting ◽  
Better Regulation ◽  
Environmental Effectiveness ◽  
Legal Barriers ◽  
The Eu

AbstractLinking the European Union Emissions Trading System (EU ETS) to the Chinese national ETS promises considerable economic and political benefits. However, different policy choices regarding cap setting between the systems are likely to impede a potential linking. A striking distinction is that the EU ETS relies upon an absolute cap, while the Chinese national ETS appears to apply an ‘intensity-based cap’ during the early stages. The current linking literature focuses on mapping legal barriers in general and has not yet focused on EU and China, let alone the intricacies of policy design. This article seeks to fill this gap by concentrating on (static and dynamic) efficiency and environmental effectiveness implications of linking and cap design. From the analysis of the cap we derive policy implications for a hypothetical ETS linking between the EU and China. In response, comprehensive and predictable regulation is needed to ensure the attainment of ETS targets and thus facilitate better regulation.

Using European Carbon Dioxide Emission Allowances for Investments in Storage Technologies

2020 ◽  
pp. 313-331
Author(s):  
Domagoj Vulin ◽  
Maja Arnaut ◽  
Lucija Jukić ◽  
Daria Karasalihović Sedlar
Keyword(s):  
Risk Mitigation ◽  
Co2 Storage ◽  
Carbon Dioxide Emission ◽  
Eu Ets ◽  
Co2 Utilization ◽  
Market Prices ◽  
Trading Scheme ◽  
And Storage ◽  
The Eu

European Trading Scheme should encourage the idea of CO2 utilization and/or underground storage. Despite the large estimates of CO2 storage capacities, cost-effective storage has not been performed in the EU. As EU ETS went through several phases and is tested to the level that it can be called mature, the trends of CO2 allowance market prices can be analyzed. CO2 reduction can be achieved by simultaneous injection for CO2 Enhanced Oil Recovery (EOR) commercially, which is proved outside the EU. The technology is well developed as a part of the oil and gas business, and the mover for implementing such technologies might be CO2 allowance price. As investments in those technologies are long-term and extremely capital intensive, this chapter discussed CO2 utilization and storage in the context of EU ETS. Additionally, the chapter presented statistical analysis that helps long-term CO2 price understanding; the connection of CO2 price with oil, gas, and electricity price; and guidelines for risk mitigation in assessing the feasibility of applying CO2 utilization and storage (CUS) technologies.

The EU Emissions Trading System in Crisis-Ridden Greece: Climate under Neoliberalism

2020 ◽  
pp. 048661342091054
Author(s):  
Andriana Vlachou ◽  
Georgios Pantelias
Keyword(s):  
Emissions Trading ◽  
Eu Ets ◽  
Low Carbon ◽  
The European Union ◽  
Trading System ◽  
Distributional Effects ◽  
Low Carbon Economy ◽  
Environmental Effectiveness ◽  
Emissions Trading System ◽  
The Eu

Neoliberal capitalism has extended the use of markets to address climate and energy issues. Carbon trading characteristically exemplifies the neoliberalization of climate policy. This paper discusses the workings of the European Union’s Emissions Trading System (EU ETS) in the European Union (EU) with a focus on its application in crisis-ridden Greece. Beyond environmental effectiveness and distributional effects, the paper explores the interactions of the EU ETS with crisis, austerity programs, energy poverty, and uneven development. Despite adjustments and changes, the EU ETS continues to indicate limited environmental effectiveness and unjust distributional effects. Moreover, by forging a centralized neoliberal transition to a low-carbon economy without consideration of the issues faced by unevenly developed and crisis-stricken EU members such as Greece, the EU ETS leads to additional disturbances and problems for the Greek economy as a whole, its pauperized working people, and its energy and climate options to reduce emissions on its own potential, needs, and priorities.

The surrender of wrongly allocated greenhouse gas emission allowances

2018 ◽  
Vol 20 (1) ◽  
pp. 32-38
Author(s):  
Marta Legnaioli
Keyword(s):  
Greenhouse Gas ◽  
Greenhouse Gas Emission ◽  
Eu Ets ◽  
The European Union ◽  
Eu Policies ◽  
Trading Scheme ◽  
Reduce Carbon Dioxide ◽  
Greenhouse Emission ◽  
First Time ◽  
The Eu

The EU emissions trading scheme (EU ETS) is considered one of the most important EU policies in the fight against climate change as it aims to reduce carbon dioxide and other greenhouse gas emissions by industries located in the EU. This article examines the EU (EU ETS) and in particular the question of whether the surrender of wrongly allocated greenhouse emission allowances is compatible with Directive 2003/87/EC. This question was referred to the Court of Justice of the European Union in the context of a preliminary ruling. This case is particularly relevant as for the first time the Court is asked to express its interpretation on the legal nature of emission allowances. This issue is highly debated and has gained increasing relevance due to the fact that the classification of allowances is not harmonised at EU level.

Sign in / Sign up

Export Citation Format

Share Document