Phase 3 of the European Union Emissions Trading Scheme (EU ETS; 2013-2020) sees the introduction of new rules governing the free allocations of emissions allowances given to energy-intensive industries. In contrast to Phases 1 and 2, allocations will be based on historical production multiplied...

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...

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 prospect of an international agreement within the United Nations Framework Convention on Climate Change (UNFCCC) resulting in a common response to carbon pricing, such as a global cap-and-trade scheme, can for now only be seen as a long-term goal. In the meantime, it is realistic to operate...