International Energy and Climate Policy - Emissions Trading

Emissions trading is a market-based instrument to reduce emissions in a cost-effective way. Starting from 2005, the EU has implemented an Emissions Trading Scheme (ETS) to mitigate CO2 emissions of some 12,000 industrial and power installations across 27 Member States. Over the past decade, ECN Policy Studies has participated in and led a variety of projects related to emissions trading in general and the EU ETS in particular.

Ongoing and Recent Projects

• Development of an EU ETS carbon price model (ongoing)
• The impact of the EU ETS on electricity prices (2005-2008)
  Since 2005, ECN Policy Studies has conducted several projects analyzing the impact of the EU ETS on electricity prices, generators’ profits, carbon emissions and other output variables of the EU power sector
• TETRIS (2005-2006)
  Technology Transfer and Investment Risk in International Emissions Trading
• INTERACT (2001-2003)
  Interaction of ETS with other (national) climate policy instruments

Publications

• Tradable Carbon Allowances: The experience of the EU and lessons learned. November 2009
• Balancing the carbon market - Overview of carbon price estimates. March 2009
• The impact of the EU ETS on prices, profits and emissions in the power sector: simulation results with the COMPETES model
  The impact of the EU ETS on prices, profits and emissions in the power sector: simulation results with the COMPETES model
• Implications of CO2 Emissions Trading for Short-run Electricity Outcomes in Northwest Europe
• Options to address concerns regarding EU ETS-induced increases in power prices and generators’ profits: the case of carbon cost pass-through in Germany and the Netherlands
• The implications of free allocation versus auctioning of EU ETS allowances for the power sector in the Netherlands
• The impact of the EU ETS on electricity prices
• Options for post-2012 EU burden sharing and EU ETS allocation (2006-2007)
• Implications of announced phade II national allocation plans for the EU ETS
• EU ETS Allocation: evalutation of present system and options beyond 2012
• CO2 cost pass-through and windfall profits in the power sector
• CO₂ price dynamics. A follow-up analysis of the implications of EU emissions trading for the price of electricity 
• Allocation matters - so what can we do about it? Strategies for the electricity sector 2008-2012
  CO₂ price dynamics: The implications of EU emissions trading
  for the price of electricity
• The interaction between the EU emission trading scheme and national policies
• Implementing emissions trading in the EU: How to optimize its economic benefits?
  EU Emissions Trading in a Crowded National Climate Policy Space: Some findings from the INTERACT project
  Carbon Trading in the Policy mix
• Interaction in EU Climate Policy – Final Report
  The impact of the EU emissions trading scheme on the price of electricity in the Netherlands
  Interaction of the EU emissions trading directive with climate policy instrument in the Netherlands. Policy Brief
  Interaction between the EU emissions trading scheme and energy policy instruments in the Netherlands. Implications of the EU Directive for Dutch climate policies
• Economic effects of grandfathering CO2 emission allowances
• Kyoto mechanisms: the role of joint implementation, the clean development mechanism and emissions trading in reducing greenhouse gas emissions
  
  Earlier publications

Presentations

• Het EU emissiehandelssysteem na 2010
• EU ETS - economische evaluatie
• The impact of the EU ETS on power prices
• Marktimperfecties van allocatie in het EU ETS: opties na 2012
• The impact of the EU ETS on electricity prices: some research findings and policy implications
• Options to address EU ETS induced increases in power prices and windfall profits
• Pass-through of allowance costs on power prices
• Emissiehandel
• The impact of the EU ETS on electricity prices: experiences from the past and expectations for the future
• The incidence of carbon cost pass through on various power markets across the EU ETS
• Opties voor EU lastenverdeling en allocatie van ETS rechten na 2012
• Analyzing the Development and Implementation of Phase II NAPs: Methodology and Results – The Netherlands Perspective
• Effectiviteit van Europees klimaatbeleid: emissiehandel tussen nationale allocatie, Brusselse harmonisatie en mondiale lastenverdeling.
• Options to address EU ETS induced increases in power prices and windfall profits.
• CO2 price dynamics: The implications of EU emissions trading for electricity prices and operations
• Interactions between EU Emissions Trading and national climate policies. Some findings of the INTERACT Project