Our paper contributes to the literature by focusing on the different kinds of economic incentives and implications of unilateral price floors implemented in a multilateral emissions trading system.
The observations expressed by the expert group were taken into account when preparing the draft delegated decision approving the unilateral extension to additional sectors of the system by Austria and the additional issue of allowances.
By analysing international experiences, this report draws lessons for designing and implementing effective, efficient emissions trading systems. The report covers structures, policies and objectives across the energy sector, elaborating key lessons and questions especially for jurisdictions interested in developing new emissions trading systems.
This particular example perfectly highlights why Unilateral Emissions Trading System Guidelines is so captivating.
Directive 2003/87/EC of the European Parliament and of the Council (4) established a system for greenhouse gas emission allowance trading within the Union, in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner.
Article 30j of the ETS Directive allows Member States to unilaterally extend the scope of application of ETS 2 in their jurisdiction to sectors that are not listed under Annex I and Annex III of the ETS Directive and to apply emissions trading in those sectors.
This gradual introduction is aligned with the phase-out of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.
