The EU allows those installations that are subject to emissions trading to use a limited volume of certified emissions reductions (CERs), generated through the Clean Development Mechanism (CDM), to cover their own GHG emissions. These CERs can be used in addition to the EU allowances (EUAs),...

A detailed description of the European Commission's carbon leakage quantitative assessment methodology is used to assess sectors at risk of carbon leakage. It sets out the steps taken to follow the EU Emissions Trading Scheme (EU ETS) Directive and the necessary work to generate useful data...

This book is the first stocktaking of what the decarbonization of the world economy means for fossil fuel+ "dependent countries. These countries are the most exposed to the impacts of global climate policies and, at the same time, are often unprepared to manage them. They depend on the export of...

Governments willing to commit themselves to maintain carbon prices at or above a certain level face the challenge that their commitments need to be credible both for investors in low-carbon technology and for foreign governments. This article argues that governments can make such commitments by...

The European emissions trading scheme (EU ETS) has an efficient and effective market design that risks being undermined by three interrelated problems: the approach to allocation; the absence of a credible commitment to post-2012 continuation; and concerns about its impact on the international...

To meet its Kyoto requirements, the EU will establish an internal market for carbon dioxide allowances from 2005, the EU Emissions Trading Scheme (ETS). National governments are to allocate most of these allowances for free. The analysis shows that as a result of the free allocation, the net...

The allowance allocation under the European emission trading schemes differs fundamentally from earlier cap-and-trade programmes, such as SO₂ and NO_x in the USA. Because of the sequential nature of negotiations of the overall budget, the allocation also has to follow a sequential process. If...

Policy targets are used to improve the implementation of domestic and international actions, in a national context and in international frameworks. But how can domestic and international experience be useful for climate policy? Case studies point to the value of defining policy targets more...