This report evaluates the initial trial phase of the EU Emissions Trading System and provides lessons for the EU moving forward as well as for the development of cap-and-trade programs in the United States.

This book looks at methods to maintain a level playing field for US industry under domestic climate policy. Through an assessment of the economics and trade flows of key carbon-intensive industries, the authors evaluate a number of proposals included in current legislation. They argue that, given the limited role of exposed sectors in the US economy, measures need to be targeted rather than comprehensive. Efforts to contain costs for carbon-intensive manufacturing, if not properly considered, can harm other industries and raise the cost of reducing emissions for the economy as a whole.