This article analyses the implementation of emissions trading systems (ETSs) in eight jurisdictions: the EU, Switzerland, the Regional Greenhouse Gas Initiative (RGGI) and California in the US, Québec in Canada, New Zealand, the Republic of Korea and pilot schemes in China. The article clarifies what is working, what isn’t and why, when it comes to the practice of implementing an ETS. The eight ETSs are evaluated against five main criteria: environmental effectiveness, economic efficiency, market management, revenue management and stakeholder engagement. Within each of these categories, ETS attributes ? including abatement cost, stringency of the cap, improved allocation practices over time and the trajectory of price stability ? are assessed for each system. Institutional learning, administrative prudence, appropriate carbon revenue management and stakeholder engagement are identified as key ingredients for successful ETS regimes. Recent implementation of ETSs in regions including California, Québec and South Korea indicates significant institutional learning from prior systems, especially the EU ETS, with these regions implementing more robust administrative and regulatory structures suitable for handling unique national and sub-national opportunities and constraints. The analysis also shows that there is potential for a ‘double dividend’ in emissions reductions even with a modest carbon price, provided the cap tightens over time and a portion of the auctioned revenues are reinvested in other emissions-reduction activities. Knowledge gaps exist in understanding the interaction of pricing instruments with other climate policy instruments and how governments manage these policies to achieve optimum emissions reductions with lower administrative costs.Key policy insights
Countries are learning from each other on ETS implementation.
Administrative and regulatory structures of ETS jurisdictions appear to evolve and become more robust in every ETS analysed.
A ‘double dividend’ for emissions reductions may also exist in cases where mitigation occurs as a result of the ETS policy and when auction revenues are reinvested in other emissions-reduction activities.
Energy-intensive industries play an important role in low-carbon development, being particularly exposed to climate policies. Concern over possible carbon leakage in this sector poses a major challenge for designing effective carbon pricing instruments (CPI). Different methodologies for assessing carbon leakage exposure are currently used by different jurisdictions, each of them based on different approaches and indicators. This paper aims to analyse the extent to which the use of different methodologies leads to different results in terms of exposure to the risk of carbon leakage, using the Brazilian industry sector as a case study. Results indicate that carbon leakage exposure is an expected outcome of eventual CPI implementation in Brazilian industry. However, results vary according to the chosen methodology, so the definition of the criteria is paramount for assessing sectoral exposure to the risk of carbon leakage.
Key policy insights
Despite increasing discussion about the implementation of carbon pricing on the Brazilian industrial sector, the evaluation of carbon leakage risks is still neglected.
Assessments of the risk of carbon leakage are directly related to the indicators and criteria used by each methodology. Thus, a given subsector may present different levels of exposure to carbon leakage depending on the methodological choice.
More than a purely technical discussion, the methodological definition of carbon leakage risk is a political discussion – it can be well-conducted, leading to the success of a CPI, or even sabotaged, by implicitly subsidizing energy-intensive industries.
Abstract This paper discusses the results of the BEAP linear programming model that has been developed to study the optimal use of biomass and land for greenhouse gas emission reduction, notably the competition between food production, biomass production for energy and materials and afforestation. The model results suggest up to 100 EJ biomass use in case of global policies (about 20% of global primary energy use). The biomass is used for industrial and residential heating, transportation fuels and as a feedstock for plastics. In the electricity markets competing emission reduction options are more cost-effective than biomass. In case the Kyoto protocol is continued beyond 2010 the developed countries can rely in 2020–2030 on afforestation and land use change credits from developing countries, without any major use of other emission reduction strategies. However, in case of a planning perspective of more than half a century bioenergy is preferred instead of afforestation. The results indicate a limited impact on global agricultural trade, but food demand may be affected by CO2 policies. 相似文献