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 »

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 »

Identifying the Proper Incidence of Regulation in a European Union Greenhouse Gas Emissions Allowance Trading System

This paper compares upstream, downstream and hybrid approaches to designing a greenhouse gas cap-and-trade system for the European Union. These trading models are assessed with reference to five policy criteria: economic efficiency, environmental effectiveness, distributional implications, administrative feasibility and cultural acceptability. This paper focuses on the first three criteria while noting considerations relevant to the... continue reading »

Design of a Practical Approach to Greenhouse Gas Emissions Trading Combined with Policies and Measures in the EC

This paper provides a “strawman” proposal, originally intended to generate dialogue with Member States present at a 1999 workshop. The proposal provides a detailed profile of how a more limited EU-wide emissions trading system covering selected industrial sectors combined with the current system of policies and measures could go into effect in advance of 2008.

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 »

Compliance-Related Aspects of Greenhouse Gas Emissions Trading in the EU

The purpose of this paper is to examine the compliance-related aspects of greenhouse gas emissions trading in the European Union. The compliance-related components of trading include measurement of emissions, reporting of emissions, verification by regulatory authorities of reported emissions, and sanctions for noncompliance.