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.
In this paper, we discuss the implementation of Capacity Remuneration Mechanisms (CRM) in the European Union (EU). We first illustrate that the costs of CRMs in the EU are significantly [...]
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China has always upheld multilateralism and has advocated the use of multilateral mechanisms to jointly address global climate change issues. This paper discusses what China does and why, and how [...]
Interoperability in the context of smart electricity metering is high on the European policy agenda but its essence has been challenging to capture. In this paper, we look at experiences [...]
Around 75% of European cargo transport operations in terms of ton-kilometers are performed by trucks, which, in turn, entail massive environmental and societal impacts. Prior to the COVID-19 pandemic, road [...]
Green LNG is a newly emerging trend in the natural gas industry which has been incentivised by the decarbonisation process. This new line of thinking encourages LNG suppliers to offset [...]
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