Most existing Emissions Trading Systems (ETSs) include their own specific Price Control Mechanism (PCM): a design feature which steers the allowance price into a desired range.
Divergences along five key dimensions of PCMs may impact linking between ETSs in several ways, positive or negative.
Restricted linking, e.g. exchange ratios or import quotas on allowances, could mitigate adverse effects of PCM differences between prospective partners.
Convergence towards soft and price-based PCMs is both desirable and likely difficult to accomplish.
PCMs may increase allocative efficiency if they make the allowance supply more responsive to shocks.
The most effective way to reduce long term price uncertainty remains creating an environmentally ambitious climate policy framework.
Purpose of the Review: The increasing penetration of distributed energy sources into the electricity system requires greater customer engagement in providing new flexibility services. This article reviews the main behavioural [...]
In the Commission’s Industrial Carbon Management Strategy it acknowledges the importance of CCUs, and that without it the EU will not succeed in its Green deal and Net Zero ambitions. [...]
The Recast Directive opens the single European railway area to competition. Competition is gradually emerging across the EU but there are obvious asymmetries among Member States, in particular in the [...]
As the 2021 EU urban mobility framework states, Europe is one of the most urbanised regions in the world with a huge variety of cities that are important economic and [...]
For decades, environmental degradation has been the focus of public opinion, academia, research centers, and institutions. This attention is motivated by increasing awareness of the severe ecological and socio-economic problems [...]
This policy brief, written in May 2024, provides an overview of the international carbon market landscape and describes the status quo in terms of the degree of its integration and [...]
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