Using the economic concept of demand and supply for CO2-emissions is genious. Nevertheless, the European Emissions Trading Scheme does not provide sufficient incentives for market participants to invest in low carbon options rather than buying cheap emission certificates. The EU ETS desperately needs to be reformed! On the occasion of its 10th birthday we look back on the different periods, solutions already in place and ideas worth to discuss.
Read about the ICCG’s view of the market stability reserve and the institute’s interesting thoughts about the ideas of one global ETS. Also, the consultancy Ecofys proposes a new approach of how allowances could be allocated, called “Dynamic Allocation”. And Carlo Carraro, Director of the Climate Impacts and Policy Division of the Euro-Mediterranean Center for Climate Change (CMCC), has written a brief history of the ETS. Enjoy!
Whatever the future of the EU ETS may be – TheCompensators* already provide the possibility to contribute to a better EU ETS: Compensate now!