In this paper, the authors develop a model to assess the market stability reserve, a key feature of reforming the European Union’s emissions trading system (EU ETS). Reforms to the EU ETS have been made in the face of a significant, prolonged downturn in the allowance price.

This report is part of the ‘Trends and Projections in Europe: 2018: Tracking progress towards Europe’s climate and energy targets,’ package. It is based on the most recent reported and approximated data from EU Member States on greenhouse gas emissions, renewable energy uptake and energy consumption.

The EU Emissions Trading System (EU ETS) is the world’s largest carbon market and has become a model for market-based approaches to reduce greenhouse gas emissions in other world regions.

The annual ‘Trends and projections’ report provides an assessment of the progress of the EU and European countries towards their climate mitigation and energy targets. It is based on national data for greenhouse gas emissions, renewable energy and energy consumption.

Greenhouse gas (GHG) emissions in the European Union (EU) increased by 0.6 % in 2017, according to preliminary estimates from Member States, mostly because of road transport.

Past cap-and-trade programmes have tended to encourage polluters to adopt existing abatement technologies, but have generally had little effect on innovation. This paper presents new evidence that the EU Emissions Trading System (EU ETS) may have bucked this trend and encouraged innovation rather than adoption.

Past cap-and-trade programmes have tended to encourage polluters to adopt existing abatement technologies, but have generally had little effect on innovation. This paper presents new evidence that the EU Emissions Trading System (EU ETS) may have bucked this trend and encouraged innovation rather than adoption.

EU carbon prices are set to double by 2021 and could quadruple to €55 a tonne by 2030 if the European Commission ultimately legislates to align the bloc’s current emissions targets with the Paris climate agreement, finds a new report by Carbon Tracker.

The EU Emissions Trading System (EU ETS) is important through its role as the “cornerstone” of EU climate change policy as well as a “role model” and “pioneer” for carbon markets.

The International Carbon Action Partnership’s new report finds 2017 marks a key step forward for emissions trading.

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