{ "id": "R41049", "type": "CRS Report", "typeId": "REPORTS", "number": "R41049", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 377436, "date": "2011-01-27", "retrieved": "2016-04-07T01:07:36.353204", "title": "Climate Change and the EU Emissions Trading Scheme (ETS): Looking to 2020", "summary": "The European Union\u2019s (EU) Emissions Trading Scheme (ETS) is a cornerstone of the EU\u2019s efforts to meet its obligation under the Kyoto Protocol. It covers more than 10,000 energy intensive facilities across the 27 EU Member countries; covered entities emit about 45% of the EU\u2019s carbon dioxide emissions. A \u201cPhase 1\u201d trading period began January 1, 2005. A second, Phase 2, trading period began in 2008, covering the period of the Kyoto Protocol. A Phase 3 will begin in 2013 designed to reduce emissions by 21% from 2005 levels. \nSeveral positive results from the Phase 1 \u201clearning by doing\u201d exercise assisted the ETS in making the Phase 2 process run more smoothly, including: (1) greatly improving emissions data, (2) encouraging development of the Kyoto Protocol\u2019s project-based mechanisms\u2014Clean Development Mechanism (CDM) and Joint Implementation (JI), and (3) influencing corporate behavior to begin pricing in the value of allowances in decision-making, particularly in the electric utility sector.\nHowever, several issues that arose during the first phase were not resolved as the ETS implemented Phase 2, including allocation schemes and new entrant reserves, and others. A more comprehensive and coordinated response has been designed for Phase 3 with harmonized and coordinated rules being developed by the European Commission. \nThe United States is not a party to the Kyoto Protocol. However, six years of carbon emissions trading has given the EU valuable experience in designing and operating a greenhouse gas trading system. This experience may provide some insight into cap-and-trade design issues as the United States debates the issue and some states and regions implement their own programs.\nThe EU-ETS experience illustrates the importance of having reliable emissions data for all facilities covered under a cap-and-trade scheme; data that are pivotal for developing allocation systems, reduction targets, and enforcement provisions.\nIn the United States debate continues on comprehensive versus sector-specific reduction programs; the EU-ETS experience suggests that adding sectors to a trading scheme once established may be a slow, contentious process.\nAs with most EU industries, most U.S. industry groups either oppose auctions outright or want them to be supplemental to a base free allocation. The EU-ETS experience suggests Congress and/or states may want to consider specifying any auction requirement if it wishes to incorporate market economics more fully into compliance decisions.\nEU-ETS analysis suggests the most important variables in determining Phase 1 allowance price changes were oil and natural gas price changes; this apparent linkage raises possible market manipulation issues, particularly with the inclusion of financial instruments such as options and futures contracts. The EU will examine the matter in preparation for Phase 3. Congress may consider whether the government currently has sufficient regulatory and oversight authority over such instruments.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41049", "sha1": "06c17d47ee5869fa531ca810d5ec4cef890955b8", "filename": "files/20110127_R41049_06c17d47ee5869fa531ca810d5ec4cef890955b8.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41049", "sha1": "765374696ab0c08ca0daddf03644a0f992ac7534", "filename": "files/20110127_R41049_765374696ab0c08ca0daddf03644a0f992ac7534.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc491277/", "id": "R41049_2010Sep10", "date": "2010-09-10", "retrieved": "2015-01-27T19:40:46", "title": "Climate Change and the EU Emissions Trading Scheme (ETS): Looking to 2020", "summary": "This report discusses emissions standards in trade in European Union (EU).", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100910_R41049_0e0c56b2b9cd27d5dc58744c52e0ab64906bfd91.pdf" }, { "format": "HTML", "filename": "files/20100910_R41049_0e0c56b2b9cd27d5dc58744c52e0ab64906bfd91.html" } ], "topics": [ { "source": "LIV", "id": "Air pollution", "name": "Air pollution" }, { "source": "LIV", "id": "Greenhouse gases", "name": "Greenhouse gases" }, { "source": "LIV", "id": "Emissions trading", "name": "Emissions trading" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc505557/", "id": "R41049_2010Jan26", "date": "2010-01-26", "retrieved": "2015-05-29T05:37:21", "title": "Climate Change and the EU Emissions Trading Scheme (ETS): Looking to 2020", "summary": "This report discusses the European Union's (EU) Emissions Trading Scheme (ETS) is a cornerstone of the EU's efforts to meet its obligation under the Kyoto Protocol. It covers more than 10,000 energy intensive facilities across the 27 EU Member countries.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100126_R41049_45768552cdfc2fe4ffc1391a3e92d68dce2425fb.pdf" }, { "format": "HTML", "filename": "files/20100126_R41049_45768552cdfc2fe4ffc1391a3e92d68dce2425fb.html" } ], "topics": [ { "source": "LIV", "id": "Environmental policy", "name": "Environmental policy" }, { "source": "LIV", "id": "Emissions trading", "name": "Emissions trading" }, { "source": "LIV", "id": "Air pollution", "name": "Air pollution" } ] } ], "topics": [ "Economic Policy" ] }