The empirical literature indicates that, in Phases I and II, the impact of the EU ETS on low-carbon innovation was moderate. The findings of one prominent study, which measures innovation output by patent counts, present a more clearly positive picture. - The empirical literature indicates that,...

The current EU climate end energy package includes several policies to reduce greenhouse gas (GHG) emissions by 2020. The main instrument is the EU Emission Trading System (EU ETS). The complexity of this policy package flags up synergies and interactions among different climate policy...

The brief emphasises the need to translate climate commitments into effective policies, focusing on carbon pricing mechanisms like emissions trading, carbon taxes, and crediting mechanisms led by public authorities. - Carbon pricing cooperation is essential for increasing climate ambition,...

Achieving climate neutrality by 2050 requires tailored approaches for each sector, with an in-depth assessment of the technical, political, and social feasibility of relying on an emissions trading system (ETS). - To ensure a cohesive decarbonisation strategy, interaction effects between the EU...

The regulatory landscape related to carbon credits is dynamically evolving. Even though the global market for carbon credits remains relatively limited compared to the ones created by emission trading systems, it can still play an important and complementary role in fostering positive climate...

Compliance carbon markets continue to be at the core of global climate mitigation efforts and raised a record USD 74 billion in revenues in 2023. In 2024, 36 Emission Trading Systems (ETSs) are in force, covering approximately 18% of global emissions. In addition, 22 ETSs are being developed or...

The EU Emissions Trading System (EU ETS) - by far the world's largest carbon market - has been an effective means of reducing emissions in the EU. As of 2027 the EU ETS will include emissions from road transport and heating and is expected to cover 75% of the EU's emissions. The EU has also...

We examine the causal impact of carbon pricing on aviation supply exploiting a policy change in the European Emissions Trading system (EU ETS). Our econometric approach is based on a matched differences-in-differences strategy. We find that low-cost airlines end up supplying 7% fewer seats than...