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This paper addresses three basic questions:
- What is the likely scale and distribution of revenues
associated with auctioning allowances under the currently proposed structure of
EU ETS Phase III, and how might this be affected if the EU were to move to a
stronger 2020 cap?
- What might be the revenues raised by moving to auctioning
in the cement and/or steel sectors, with full auctioning from
2013 representing the extreme case?
- What might be appropriate uses of revenues raised under
Phase III and how do these relate to current EU commitments, plans and concerns
in climate change, competitiveness and beyond?
Type: Final paper