This Special Report aims to contribute to the debate on the Market Stability Reserve (MSR), which was introduced by the European Commission in a legislative proposal of January 2014. The MSR would introduce a degree of supply management into the EU Emissions Trading System (ETS). This report is...

In its conclusions in June 2014, the 40th session of the Subsidiary Body for Scientific and Technological Advice (SBSTA 40) invited submissions on the Framework for Various Approaches (FVA), New Market Mechanism (NMM) and Non Market Approaches (NMA) by 22 September 2014. This document is the...

At the Durban meeting of the United Nations Framework Convention on Climate Change (UNFCCC), Parties to the Convention and observer organisations were invited to make submissions on a number of issues relevant to the discussions on various approaches, including opportunities for using markets,...

While most of the world has pursued absolute emission limits for greenhouse gases, the Bush administration has proposed an alternative policy formulation based, among other things, on reducing emissions intensity-that is, emissions per dollar of real gross domestic product (GDP). Critics of this...

Carbon markets are substantial and they are expanding. There are many lessons from experiences over the past eight years: fewer free allowances, better management of market-sensitive information, and a recognition that trading systems require adjustments that have consequences for market...

We ask whether the US government should replace its current discounting practices with a declining discount rate schedule, as the United Kingdom and France have done, or continue to discount the future at a constant exponential rate. We present the theoretical basis for a declining discount rate...

Compliance links between CO2 emission trading programs--where firms regulated under one region's tradable permit program can comply using permits from another region, and vice-versa--are beginning to arise as a vehicle to lower costs, increase liquidity, and strengthen institutions while...

Over the past two decades, the international community has struggled to deal constructively with the problem of mitigating climate change. This is considered by many to be the preeminent public policy challenge of our time, but actual policy responses have been relatively modest. This essay...

Carbon markets are substantial and expanding. There are many lessons from experience over the past 9 years: fewer free allowances, careful moderation of low and high prices, and a recognition that trading systems require adjustments that have consequences for market participants and market...

Links between emission trading programs are not immutable, as highlighted by New Jersey's exit from the Regional Greenhouse Gas Initiative. This raises the question of what to do with existing permits that are banked for future use--choices that have consequences for market behavior in advance...