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The New Deal: An Enlightened Industrial Policy for the EU through Structural EU Emissions Trading System Reform

This report recommends seven reforms to the EU Emissions Trading System to spur the innovation and investments required to create a thriving and low carbon industrial sector. These reforms include the setting aside of EU ETS allowances into an industrial low-carbon transition fund, a price management mechanism, the structural adjustment of the EU ETS caps toward... continue reading »

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Global Sectoral Study: Final Report

The Global Sectoral Approaches study, initiated in May 2008 with support from the European Commission, was designed to provide a “proof-of-concept” of the feasibility of sectoral approaches in a post-2012 international framework for climate policy. The study initially investigated a transnational approach in which all countries face similar benchmarks, a sectoral CDM approach emphasizing carbon... continue reading »

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Preventing Market Disruptions in Cap-and-Trade Programs

This paper discusses trading system design elements that could help prevent market disruptions, including aspects of allowance auctions, transaction registries, allowance banking, and price stabilizing mechanisms. It raises the possibility of employing temporary, special methods in the early years of program implementation to create an added degree of safety as firms and regulators gain experience... continue reading »

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AB32 and California’s Forestry Sector

California is developing policies to bring statewide emissions back to 1990 levels by 2020 as specified in AB32. The Scoping Plan has proposed a broad cap-and trade program to help achieve this objective. As indicated in Appendix C of the Plan, the economic sectors that would be subject to an emission cap include electricity, transportation... continue reading »

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An Upstream/Downstream Hybrid Approach to Greenhouse Gas Emissions Trading

Part of the Airlie Carbon Trading Papers, this report examines alternative approaches to expanding the coverage of a downstream trading system by bringing in facilities from farther upstream. It calls attention to a number of issues that would need to be addressed in integrating upstream and downstream facilities into a single system, most notably the... continue reading »

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Allocation of Greenhouse Gas Reduction Responsibilities Among and Within the Countries of the European Union

This paper deals with the issues relating to the allocation of emission allowances (or equivalently Parts of Assigned Amount, PAAs) among and within States. This paper was prepared primarily to provide background information to members of the Study Team on key issues related to the design of an European emissions trading scheme and to assist the... continue reading »

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Accounting for Non-fuel Uses of Fossil Fuels in an Upstream Carbon Trading System

Part of the Airlie Carbon Trading Papers, this report provides a closer look at the use of fossil energy for non-fuel purposes in the US, and then presents alternative policy options for accounting for this non-fuel use in an upstream trading system. The paper argues for a two-track approach to accounting for non-fuel uses: First,... continue reading »

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Tradable Carbon Allowance Auctions: How and Why to Auction

Part of the Airlie Carbon Trading Papers, this report argues that an auction is the best way to allocate allowances in a carbon cap-and-trade system.To minimize administrative costs, allowances would be required primarily at the level of oil refineries, natural gas pipelines, natural gas liquid sellers, and coal processing plants. To maximize liquidity in secondary... continue reading »