The Market Stability Reserve aims to provide carbon price stability for the EU emissions trading system (EU ETS) but serious questions are being asked about how much stability – if any – it provides, say Michael Pahle and Simon Quemin. Read more
EU ETS
The authors of this paper develop a theoretical model of emissions trading in the presence of transaction costs, calibrating the model to annual transactions and compliance data in the European Union emissions trading scheme over its second phase. Read more
The impact of COVID-19 on the price of carbon illustrates just how important it is to build flexibility into cap-and-trade systems and this is something policymakers should remember for the design of the UK’s post-Brexit emissions trading system, argue Josh Burke and Luca Taschini. Read more
Following reform of the EU emissions trading system (ETS) in 2018 further regulatory amendments are on the horizon as part of the 2021 review. This paper evaluates and compares the impacts of realistic regulatory changes within the ETS to inform the 2021 review and raise ambition, examining two main policy levers: the linear reduction factor and the market stability reserve. Read more
Josh Burke discusses (in this article for EU Observer) what Brexit will mean for UK climate policy and considers options for carbon pricing if it withdraws from the EU ETS. Read more
New research by Giovanni Marin and Francesco Vona finds that increases in energy prices substantially reduce energy consumption and carbon... Read more
The authors of this paper develop a model to evaluate first, the market developments in the European Union emissions trading scheme (EU ETS) over 2008–2017 ex-post and second, the performances of main features of the EU ETS reforms that took place in 2018, ex-ante. Read more
Carbon tax with “citizens’ dividend” one of best ways for UK to reach net zero by 2050 If the UK... Read more
This policy brief analyses global trends in carbon taxation and differences in tax design around the world to draw out lessons for the design of a possible new carbon tax for the UK, as the country plans how to meet its ambitious new net-zero emissions target and how it prices carbon after Brexit. Read more
This written evidence was submitted on 12 July 2019 to the joint consultation into ‘The future of carbon pricing’, being carried out by the UK, Scottish and Welsh Governments, and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland. Read more