Evaluating the EU Emissions Trading System: Take it or leave it?
An assessment of the data after ten years
- Title
- Evaluating the EU Emissions Trading System: Take it or leave it?
- Author(s)
- Mirabelle Muûls, Jonathan Colmer, Ralf Martin and Ulrich J. Wagner
- Organisation
- Imperial College London
- Year
- October 2016
- Type
- Briefing
- Length
- 12 p.
- Keywords
- Carbon leakage
Headlines
- Since 2005, the European Union (EU) has been running a carbon market to govern the greenhouse gas emissions from 12,000 power and manufacturing plants in 31 countries.
- This has led to a reduction in industrial carbon emissions.
- It has had no detrimental effects on economic performance.
- The scheme has been partly responsible for the increase in low-carbon ‘cleantech’ innovation since 2005.
- The detailed design of a carbon market affects its impact on the risk of carbon leakage and the incentives it creates for cleantech innovation.
- While there are opportunities for further improving the EU Emissions Trading System (ETS), evidence suggests that it is worthwhile maintaining and developing this landmark policy.
- As an alternative policy, a carbon tax would provide more certainty and visibility for low-carbon business, therefore it should remain a potential tool for policymakers.
