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Emissions trading systems with different price control mechanisms : implications for linking - Report for the Carbon Market Policy Dialogue
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Florence School of Regulation; Climate; LIFE DICET Project; 2020
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GALDI, Giulio, VERDE, Stefano F., BORGHESI, Simone, FÜSSLER, Jürg, JAMIESON, Ted, WIMBERGER, Emily, ZHOU, Li, Emissions trading systems with different price control mechanisms : implications for linking - Report for the Carbon Market Policy Dialogue, Florence School of Regulation, Climate, LIFE DICET Project, 2020 - https://hdl.handle.net/1814/68842
Abstract
This report was prepared to inform the Carbon Market Policy Dialogue (CMPD) between the European Commission, as the regulator of the EU Emissions Trading System, and the regulatory authorities for the emissions trading systems (ETSs) of California, Québec, China, New Zealand, and Switzerland. In this report, we propose a conceptual framework to characterise price control mechanisms (PCMs), i.e. the design features of emission trading systems (ETSs) meant to tackle price uncertainty. We present the PCM features of the six ETSs involved in the CMPD according to the conceptual framework and illustrate some insight from the scientific literature on linking ETSs with different PCMs. Finally, we discuss the main
issues emerging from this report and provide out concluding remarks.
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The present report is a deliverable of the LIFE DICET project, which is co-financed by the EU LIFE Programme of the European Commission (LIFE18 GIC/IT/001129).