The European Union’s Emissions Trading System: Climate Model, Now Climate Muddle?

The European Union’s Emissions Trading System (EU-ETS) is an extremely important component of global climate policymaking. It represents more than 80% of the global market value of emissions trading permits and serves as the cornerstone of the EU’s response to climate change. Moreover, a number of other States and sub-national actors, such as California – which has the second largest carbon trading program in the world – have either linked their emissions trading systems to the EU-ETS, or contemplate doing so in the future. However, with the price of allowances plummeting a startling 83% from 2008-2013 the EU-ETS is abjectly… [more]