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.
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The energy transition calls for a rapid expansion of electricity grids at both transmission and distribution levels. Technological progress and digitalisation offer new solutions to system needs that can increase [...]
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Rail transport and inland waterways are crucial to achieve the objectives outlined in the Green Deal agenda. These aims include a 55% reduction in greenhouse gases by 2030 and attaining [...]
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