External Aspects of the EU ETS in Aviation in Light of CORSIA

2021 ◽  
Vol 23 (2-3) ◽  
pp. 271-282
Author(s):  
Marek Jaśkowski
Keyword(s):  
Co2 Emissions ◽  
Emissions Trading ◽  
Legal Status ◽  
Global Market ◽  
Civil Aviation ◽  
Eu Ets ◽  
Trading System ◽  
Present Contribution ◽  
Carbon Offsetting ◽  
The Eu

Abstract According to International Civil Aviation Organization (ICAO) Assembly Resolution A40-19, the Carbon Offsetting and Reduction Scheme for International Aviation mechanism (CORSIA) is to be the only global market-based measure (MBM) applied to CO2 emissions from international aviation. This solution has been dictated by the intention to avoid a patchwork of duplicative State or regional MBMs and to ensure that international aviation CO2 emissions should be accounted for only once. The present contribution assesses the margin of autonomy left for Emissions Trading System of the EU (EU ETS) mechanism in the light of this clause, considering its legal status and divergent interpretations. Moreover, the recent 2020 roadmap for revision of the EU ETS Directive concerning aviation, published by the European Commission, is briefly discussed.

scholarly journals CORSIA - Carbon Offsetting and Reduction Scheme for International Aviation

2020 ◽  
Vol 8 (1) ◽  
pp. 23-28
Author(s):  
Miloš Strouhal
Keyword(s):  
Airline Industry ◽  
Civil Aviation ◽  
Eu Ets ◽  
International Civil Aviation Organization ◽  
Reduction Scheme ◽  
Emission Mitigation ◽  
Carbon Offsetting ◽  
Practical Impact ◽  
The Eu

The article discusses the CORSIA - a newly introduced an emission mitigation approach for the global airline industry, developed by the International Civil Aviation Organization (ICAO). It also describes all phases of the project, their analysis and the practical impact of CORSA on aircraft operators. The examples show the operator’s costs associated with this project. The mutual coexistence of CORSIA and the EU ETS is also analysed.

scholarly journals European union emissions trading system with regard to climate change mitigation in Latvia

2012 ◽  
Vol 8 (-1) ◽  
pp. 29-35 ◽  
Author(s):  
Ilze Pruse
Keyword(s):  
European Union ◽  
Climate Change Mitigation ◽  
Emissions Trading ◽  
Ghg Emissions ◽  
Eu Ets ◽  
The European Union ◽  
Ghg Emission ◽  
Trading System ◽  
Change Mitigation ◽  
The Eu

Abstract The goal of this paper is to analyse the volumes of greenhouse gas (GHG) emissions from the European Union Emissions Trading System’s (EU ETS) participants in Latvia in relation to their participation therein. After describing and discussing the EU ETS mechanism and its operation in Latvia in the period 2005-2010, the interconnectedness between the GHG emissions and the EU ETS participants’ operation is analysed. The analysis concludes that, although the EU ETS has contributed towards GHG emission reduction, due to the growth of the economy, overall GHG emissions from the EU ETS participants in Latvia are increasing.

scholarly journals Emissions Trading Hybrids: The Case of the EU ETS

2019 ◽  
Vol 15 (1) ◽  
Author(s):  
Edwin Woerdman ◽  
Andries Nentjes
Keyword(s):  
Emissions Trading ◽  
Production Capacity ◽  
Performance Standard ◽  
Eu Ets ◽  
The European Union ◽  
Cap And Trade ◽  
Trading System ◽  
Standard Rate ◽  
High Level ◽  
The Eu

Abstract We argue that the European Union Emissions Trading System (EU ETS) has evolved into a hybrid of two design variants, allowance trading (cap-and-trade) and credit trading (performance standard rate trading), with an added feature of industry support to minimize carbon leakage. In particular the current rules tying free allowances to production capacity expansion, plant closure and capacity use have transformed the efficient cap-and-trade program that stood at the origins of the EU ETS into a system that even surpasses credit trading in paying hidden product subsidies to firms. This combination of rules encourages an inefficiently high level of investment in production capacity and an inefficiently high output in industries exposed to international competition. The result is a sub-optimal EU Emissions Trading ‘Hybrid’ (which we therefore label as ‘EU ETH’).

scholarly journals Impact of Eu Ets on Sustainable Development of its Participants in Latvia

2012 ◽  
Vol 11 (1) ◽  
pp. 165-177
Author(s):  
Ilze Prūse
Keyword(s):  
Sustainable Development ◽  
Emissions Trading ◽  
Greenhouse Gas Emission ◽  
Eu Ets ◽  
The European Union ◽  
Gas Emission ◽  
Trading System ◽  
The Sustainable Development ◽  
The Impact ◽  
The Eu

Abstract Latvia is covered by the European Union Emissions Trading System (EU ETS) and therein 80 participants from Latvia have participated. The goal of the paper is to analyse the impact of the EU ETS on the sustainable development of its participants in Latvia. The concept of sustainable development is explored with respect to both macro and micro scale and in the context of sustainable development the EU ETS is described. The impact of the EU ETS on its participants in Latvia is considered by means of methods of quantitative and qualitative analysis. It has been established that in past the participants of the EU ETS from Latvia had generally beneficial positions in the EU ETS; hence although the EU ETS did not directly promote greenhouse gas emission reductions, it provided opportunities to gain additional profits and many of the EU ETS participants in Latvia made use of them. In addition, certain interrelationships have been identified between the data on the EU ETS participants performing EUA trading and the data on the EU ETS participants not performing EUA trading. It has been concluded that the EU ETS might have contributed towards the sustainable development of its participants in Latvia within its certain dimensions.

The EU Emissions Trading System in Crisis-Ridden Greece: Climate under Neoliberalism

2020 ◽  
pp. 048661342091054
Author(s):  
Andriana Vlachou ◽  
Georgios Pantelias
Keyword(s):  
Emissions Trading ◽  
Eu Ets ◽  
Low Carbon ◽  
The European Union ◽  
Trading System ◽  
Distributional Effects ◽  
Low Carbon Economy ◽  
Environmental Effectiveness ◽  
Emissions Trading System ◽  
The Eu

Neoliberal capitalism has extended the use of markets to address climate and energy issues. Carbon trading characteristically exemplifies the neoliberalization of climate policy. This paper discusses the workings of the European Union’s Emissions Trading System (EU ETS) in the European Union (EU) with a focus on its application in crisis-ridden Greece. Beyond environmental effectiveness and distributional effects, the paper explores the interactions of the EU ETS with crisis, austerity programs, energy poverty, and uneven development. Despite adjustments and changes, the EU ETS continues to indicate limited environmental effectiveness and unjust distributional effects. Moreover, by forging a centralized neoliberal transition to a low-carbon economy without consideration of the issues faced by unevenly developed and crisis-stricken EU members such as Greece, the EU ETS leads to additional disturbances and problems for the Greek economy as a whole, its pauperized working people, and its energy and climate options to reduce emissions on its own potential, needs, and priorities.

scholarly journals The EU ETS and its companion policies: any insight for China's ETS?

2021 ◽  
pp. 1-19
Author(s):  
Stefano F. Verde ◽  
Giulio Galdi ◽  
Isabella Alloisio ◽  
Simone Borghesi
Keyword(s):  
Emissions Trading ◽  
Eu Ets ◽  
Low Carbon ◽  
Trading System ◽  
Major Market ◽  
Ex Post ◽  
European Experience ◽  
Low Carbon Technologies ◽  
Emissions Trading System ◽  
The Eu

Abstract This paper analyses the role that companion policies have had in the reduction of emissions regulated by the EU Emissions Trading System (EU ETS) and the related policy interactions, with a view to identifying relevant insights for China's forthcoming Emissions Trading System (ETS). The investigation rests on: (a) the observation of the EU's and China's ETSs and policy mixes; (b) economic theory concerning companion policies and ETS design; and (c) empirical ex-post evidence from the EU ETS. Three main conclusions emerge from the analysis. First, China's ETS, while not imposing a fixed cap on emissions, will not be immune to waterbed effects of companion policies. Second, the European experience stresses the importance of making explicit the objectives pursued by companion policies, and of balancing policies for innovation and policies for adoption of low-carbon technologies. Third, in the presence of a major market surplus, only permanent adjustments to allowance supply can be effective in raising prices.

scholarly journals Implementing the EU Climate Law via the ‘Fit for 55’ package

2022 ◽  
Vol 1 (1) ◽  
Author(s):  
Sabine Schlacke ◽  
Helen Wentzien ◽  
Eva-Maria Thierjung ◽  
Miriam Köster
Keyword(s):  
Greenhouse Gas ◽  
Emissions Trading ◽  
Legal Status ◽  
Legal Framework ◽  
The European Union ◽  
Trading System ◽  
Greenhouse Gas Reduction ◽  
Eu Emissions Trading System ◽  
Emissions Trading System ◽  
The Eu

ABSTRACT To implement the European Union (EU) Climate Law’s newly established 55% greenhouse gas reduction objective for 2030, the EU Commission suggests a wave of reforms to the European energy and climate legislation. The contribution aims to describe the EU Commission’s 16 initial legislative and strategic proposals regarding the major pillars of the European energy and climate legislation and intends to give an overview on the suggested reforms. By comparing the legal status quo with the legal framework de lege ferenda as presented by the Commission’s proposals, the planned major changes to the legal structures are identified. To achieve the 55% greenhouse gas reduction objective for 2030, all existing legal climate and energy acts are planned to be tightened by amending their targets as well as scopes and revising their structures. The suggested reforms concern the existing EU emissions trading system, effort sharing system between the Member States, energy taxation, energy efficiency and renewable energies. Additionally, the implementation of new instruments, such as the second EU emissions trading system for the sectors buildings and transport, the Carbon Border Adjustment Mechanism and the Social Climate Fund, is proposed. The design of the package shows that the Commission still generally pursues a climate legislation characterized by a mix of instruments and policies being both price based and regulatory. So, even though the major proposed change—the introduction of a second separate emissions trading system—would strengthen the role of carbon pricing, the Commission still relies on a mix of instruments without defining a leading instrument.

scholarly journals The Evolution of the Emission Trading System in the EU and Italy in the 2030 Climate and Energy Framework. Brief Notes on Climate Change Litigation

2020 ◽  
Vol 3 (1) ◽  
Keyword(s):  
Climate Change ◽  
Emissions Trading ◽  
Emission Trading ◽  
Eu Ets ◽  
Emission Trading System ◽  
Trading System ◽  
Polluter Pays Principle ◽  
Combat Climate Change ◽  
Eu Emissions Trading System ◽  
The Eu

The EU Emissions Trading System (EU ETS) is an important tool of the EU’s strategy to combat climate change, as it aims to reduce greenhouse gas emissions, according to the “polluter pays” principle. The EU ETS is more effective than environment taxation that has had little application, as it is difficult to determine the amount of tax and how it should be applied to companies and consumers [1].

scholarly journals The European Union Emissions Trading System reduced CO2 emissions despite low prices

2020 ◽  
Vol 117 (16) ◽  
pp. 8804-8812 ◽  
Author(s):  
Patrick Bayer ◽  
Michaël Aklin
Keyword(s):  
European Union ◽  
Carbon Emissions ◽  
Emissions Trading ◽  
Carbon Markets ◽  
Eu Ets ◽  
The European Union ◽  
Trading System ◽  
Market Prices ◽  
Emissions Trading System ◽  
The Eu

International carbon markets are an appealing and increasingly popular tool to regulate carbon emissions. By putting a price on carbon, carbon markets reshape incentives faced by firms and reduce the value of emissions. How effective are carbon markets? Observers have tended to infer their effectiveness from market prices. The general belief is that a carbon market needs a high price in order to reduce emissions. As a result, many observers remain skeptical of initiatives such as the European Union Emissions Trading System (EU ETS), whose price remained low (compared to the social cost of carbon). In this paper, we assess whether the EU ETS reduced CO2 emissions despite low prices. We motivate our study by documenting that a carbon market can be effective if it is a credible institution that can plausibly become more stringent in the future. In such a case, firms might cut emissions even though market prices are low. In fact, low prices can be a signal that the demand for carbon permits weakens. Thus, low prices are compatible with successful carbon markets. To assess whether the EU ETS reduced carbon emissions even as permits were cheap, we estimate counterfactual carbon emissions using an original sectoral emissions dataset. We find that the EU ETS saved about 1.2 billion tons of CO2 between 2008 and 2016 (3.8%) relative to a world without carbon markets, or almost half of what EU governments promised to reduce under their Kyoto Protocol commitments. Emission reductions in sectors covered under the EU ETS were higher.

Sign in / Sign up

Export Citation Format

Share Document