We develop a framework to analyze the economic implications and emissions market outcomes of
linking emissions trading systems with different features, including stringency, and apply it to the potential linking of the California and RGGI trading programs.
Kachi, A. et al. (2015),
Linking Emissions Trading Systems: A Summary of Current Research.
Linking the Emissions Trading Systems in EU and California.
Not exact matches
The
system will work better if markets
link up to
trade internationally — greater competition for permits should add to the incentive to cut
emissions.
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Ahlberg, M. et al. (2013)
Linking Different
Emissions Trading Systems — Current State and Future Perspectives.
This «
linking» of two or more
emission trading systems (ETS) creates a larger carbon market, which can provide the participating regions with more cost efficient options to reduce their
emissions.
As if fulfilling that prophesy, last Friday Governor Cuomo announced that New York State will «explore the possibility» of
linking RGGI with California's cap - and -
trade system, envisioning a «North American market» where
emissions allowances are bought and sold across the United States as well as in Canada.
Linking other national or regional cap - and -
trade emissions trading systems to the EU ETS can create a bigger market, potentially lowering the aggregate cost of reducing greenhouse gas
emissions.
In addition we examine how
linking affects the structure of
emissions trading systems and decision - making.
Fourth, and of great importance, a domestic cap - and -
trade system can be
linked directly and cost - effectively with cap - and -
trade systems and
emission - reduction - credit
systems in other parts of the world to keep costs down domestically.
However, if the clean energy credits are denominated in
emissions per megawatt hour, then the program can more easily be converted to or
linked with a cap - and -
trade system.
Leading up to the Bonn meeting, stakeholders met to discuss opportunities to
link the JCM with other approaches, including other nations» INDCs, bilateral agreements between Japan and capped jurisdictions that use
emissions trading systems, the International Civil Aviation Organization's Market Based Measures, and / or in a carbon market «club» with other Asian nations.
To expand
emissions permit
trading opportunities among companies, Ontario plans to
link its
system to those that already exist in Quebec and California.
California enacted an
emissions trading system in 2013, formally
linking to Quebec's
system in 2014.
The only way to avoid this problem, which will apply to all attempts to
link trading systems, is to harmonise not just the structures of the
systems but the process of setting
emission targets too.
They include a clear commitment to increase the 40 % target in case of
linking the EU's
emissions trading system (EU ETS) with other carbon markets, the way land use
emissions are accounted for and the threat the existing surplus of
emission allowances pose on the 2030 climate target.