This report provides insights to inform the UK Government’s review on expansion of the UK Emissions Trading Scheme, focusing on three sectors that might fall within the scope of future policy changes. Read more
EU ETS
A new report from Energy Systems Catapult and the Grantham Research Institute on Climate Change and the Environment has found that while the UK Emissions Trading Scheme (ETS) could provide the backbone of an enduring economy-wide framework for reaching net zero, expanding it too early to sectors not yet covered risks undermining the scheme. Read more
This paper examines whether the European Union Emissions Trading System (EU ETS) has led companies to shift the location of production, thereby creating carbon leakage. Read more
Conflicting evidence has been presented on carbon leakage, caused largely due to misconceptions over the term’s meaning. The confusion is worth disentangling because it is obscuring the debate on how to act, argue Misato Sato and Josh Burke. Read more
Carbon pricing should be part of nothing less than a significant and broad package of post-COVID fiscal reforms, say Esin Serin and Josh Burke, as they outline what these reforms should look like. Read more
This paper examines whether the European Union Emissions Trading System (EU ETS) has led companies to shift the location of production, thereby creating carbon leakage. Read more
Bob Ward reviews Bjorn Lomborg’s new book, 'False Alarm', finding the misuse of outdated, concocted and misinterpreted numbers on the costs of climate action and concluding that the book’s central claim that the ‘optimal’ level of global warming by 2100 would be 3.75˚C was completely out-of-date before it was even published. Read more
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
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
