Emissions Trading around the World: Dynamic Progress in Developed and Developing Countries

Drawing on a series of forthcoming case studies developed under a joint project of the Environmental Defense Fund (EDF) and the International Emissions Trading Association (IETA), this article conveys the dynamic bottom-up progress on emissions trading systems (ETS) around the world. The case studies will provide an easily accessible tool that facilitates the analysis of ETS based on examples from existing and developing policies. Each of the 18 case studies provides an overview of the history on climate action within the specified jurisdiction, highlights ongoing challenges and unique features, and describes key ETS elements. The jurisdictions of focus lie within both developed and developing parts of the world, and the set of case studies encompasses multinational-, national-, regional-, state/provincial-, and city-scale jurisdictions. This article summarizes the key design features and differentiating aspects of ETS development in each jurisdiction. While designs vary, each ETS described ultimately belongs to the same category of quantity-based market mechanism.

Although the outcome of the current round of international climate negotiations remains unclear, policymakers in a growing number of jurisdictions – in both developed and developing countries – are adopting market-based measures to limit carbon pollution. Each emissions trading system (ETS) relies on market forces to determine the price of covered greenhouse gases (GHGs) and aims to reduce emissions in a flexible, cost-effective way. Each program differs in structure, however, depending on local context and government decisions.
In the coming months, Environmental Defense Fund (EDF) and the International Emissions Trading Association (IETA) will jointly publish case studies about ETS development in eighteen jurisdictions. Six of these jurisdictions are emerging economies: Republic of Korea (ROK), India, Kazakhstan, China, Brazil, and Mexico. The other twelve jurisdictions covered are located in industrialized areas: the European Union (EU), Australia, New Zealand (NZ), Norway, the United Kingdom (UK), Switzerland, Japan, the Regional Greenhouse Gas Initiative (RGGI), California (CA), Quebec, Alberta, and Tokyo. The scale of trading programs spans multinational (EU ETS), national (NZ ETS), regional (RGGI), state/provincial (CA ETS/Quebec ETS), and city (Tokyo) jurisdictions.
Drawing on the project mentioned above, this commentary summarizes ETS development in the eighteen jurisdictions listed above. It categorizes jurisdictions into two bins: the twelve with ETS programs already in effect, and the remaining six that have considered, or are now examining, emissions trading legislation or regulations. Specific features that make each jurisdiction’s progress unique are described. Next, the commentary highlights the ROK, as it is a developing country under the UNFCCC’s Annex 1/non-Annex 1 divisions that has adopted an economy-wide ETS. The commentary ends with a brief conclusion.



Copyright: © Lexxion Verlagsgesellschaft mbH
Quelle: Issue 4/2012 (Dezember 2012)
Seiten: 11
Preis inkl. MwSt.: € 41,65
Autor: Peter Sopher

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