eu_logo_lReform of the European Union’s Emissions Trading System (EU ETS) is an important issue in the European policy debate. The Institute researches what long term reforms are required to make the system more responsive to economic shocks that could affect the price of allowances. The Institute’s research also looks at the design of carbon markets more broadly, exploring issues such as linking emissions trading schemes, allowance allocation rules for energy intensive sectors and the potential for market oversight mechanisms.

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