EU-ETS Post 2012: Submission to the EU Review


    No Related Project
    No Related News or Events

Other Projects

    No items found

Other Events

    No items found

The EU ETS is the only credible mechanism for establishing a common carbon price across Europe. Through this report, the authors conclude that
(1) the fundamentals of the EU-ETS Directive do not need to be renegotiated in principle,
(2) Free allocation should be greatly reduced,
(3) The Directive should stipulate a minimum not maximum level of auctioning by member states,
(4) Non-zero free allocation should constitute a temporary derogation for a few specific sectors whilst intergovernmental negotiations are pursued to explore the possibilities for state-based sector agreements and international agreement on border adjustments specifically designed to reduce leakage.

Author: Karsten Neuhoff, Michael Grubb, Jean-Charles Hourcade, and Felix Matthes
Year: 2007
Type: Final paper