International Energy and Climate Policy - Emissions Trading

Technology Transfer and Investment Risk in International Emissions Trading

TETRIS is a policy-oriented project of the 6th EU Framework Programme that aims to explore the economic and industrial impacts as well as the prospects of technology transfer associated with the implementation of the Kyoto flexible mechanisms, such as the Clean Development Mechanism (CDM) and Joint Implementation (JI). In the first step we will develop comprehensive risk indicators measuring the risks of investing in climate change mitigation in foreign countries. These indicators will be then incorporated into an economic model of international emissions trading in order to assess the technology transfer and cost savings that can be realized through the Kyoto flexible mechanisms. Another goal of our project is to examine to what extent GHG emissions trading schemes outside the European Union are compatible with each other and the proposed EU Emissions Trading Scheme. Our results will provide valuable insights about technology transfer and risk management in carbon markets, interesting for policy makers as well as for the business community.

Strategic objectives of the project are:

• to explore technology transfer related to the implementation of the Kyoto mechanisms in developing and the EU accession countries
• to develop composite indicators of the investment climate for GHG abatement projects and incorporate them into the analysis of emissions trading markets
• to assess the potential and problems of linking different emissions trading schemes
• to quantitatively analyze the economic and industrial impacts of international emissions trading

See also an article on TETRIS in the ECN newsletter

See for more information the project site or contact Nico van der Linden