Having agreed upon a binding emissions reduction path by 2020, the EU plays a leading role in international climate policy. The EU currently pursues a dual approach through an Emissions Trading Scheme (ETS) at the EU level and also via national targets in sectors not covered by the ETS. The...

We quantified the volume of free allowances that different national allocation plans proposed to allocate to existing and new installations, with specific reference to the power sector. Most countries continue to allocate based on historic emissions, contrary to hopes for improved allocation...

The current emissions trading debates in the EU and the USA were examined and the prospects for creating a transatlantic carbon market were analysed. A future US Emissions Trading Scheme (US ETS) may be designed very differently from the EU ETS, raising questions of compatibility. Crucial...

What is the significance of the 2007 United Nations Climate Change Conference in Bali? The formal outcomes, especially the 'Bali Action Plan', are described and commented on, along with the challenges for negotiating a post-2012 agreement in Copenhagen during 2008 and 2009. The article concludes...

A number of greenhouse gas emissions trading schemes have been implemented or proposed for Canada, the USA and Mexico. Links between those schemes make sense, given the close economic ties between the countries. All of the existing and proposed schemes, except Alberta's, include provisions for...

Linking emissions trading schemes has attracted interest as a means of reducing costs and expanding market size and liquidity. A number of studies have explored the compatibility of schemes, although little attention has been devoted to the implementation of links. Most trading schemes provide...

In this article the problem of credible commitment in carbon policy is discussed. Investors favour long-term predictability of the policy, but without any external enforcement mechanisms a commitment made by a government can be withdrawn, leading to scepticism and lack of credibility. This...

A framework was devised for policy-makers to assess direct bilateral cap-and-trade linkages. A systematic analysis of the economic, political and regulatory implications indicates potential benefits along with a number of potentially negative sideeffects. Theoretically, economic benefits are...

This article argues that a legally binding, multilateral agreement is a necessary condition for achieving the highest levels of greenhouse gas (GHG) emission reductions consistent with limiting warming to below either 2°C or below 1.5°C. Clear legally binding commitments within a...