{ "id": "RL34150", "type": "CRS Report", "typeId": "REPORTS", "number": "RL34150", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 348711, "date": "2008-11-24", "retrieved": "2016-04-07T03:01:15.619264", "title": "Climate Change and the EU Emissions Trading Scheme (ETS): Kyoto and Beyond", "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, with a Phase 3 proposed for 2013.\nSeveral positives resulting 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 moved into Phase 2, including allocation schemes, shutdown credits and new entrant reserves, and others. In addition, the expansion of the EU and the implementation of the directives linking the ETS to the Kyoto Protocol project-based mechanisms created new issues to which Phase 2 had to respond. A more comprehensive response to these issues is envisioned for Phase 3.\nThe United States is not a party to Kyoto. However, almost four 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 currently being debated in the United States.\nThe U.S. requires only electric utilities to monitor CO2. The EU-ETS experience suggests that expanding similar requirements to all facilities covered under a cap-and-trade scheme would be pivotal for developing allocation systems, reduction targets, and enforcement provisions.\nIn the U.S. debate 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 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. Congress may consider whether the government needs enhanced 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/RL34150", "sha1": "419d983af38c2bf537340fc6bec5fc74241f4ca7", "filename": "files/20081124_RL34150_419d983af38c2bf537340fc6bec5fc74241f4ca7.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL34150", "sha1": "2f01623b2e09d3ed85e6a1cfcdcba43494dd3f2f", "filename": "files/20081124_RL34150_2f01623b2e09d3ed85e6a1cfcdcba43494dd3f2f.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc103213/", "id": "RL34150_2008Feb11", "date": "2008-02-11", "retrieved": "2012-09-19T20:16:14", "title": "Climate Change: The EU Emissions Trading Scheme (ETS) Enters Kyoto Compliance", "summary": "This report discusses the development in global warming as a global issue. Topics include issues that have arisen regarding the ETS and considerations for cap-and-trade.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20080211_RL34150_c878e682bc6a377545719985b8db1f4c2999bfd5.pdf" }, { "format": "HTML", "filename": "files/20080211_RL34150_c878e682bc6a377545719985b8db1f4c2999bfd5.html" } ], "topics": [ { "source": "LIV", "id": "Global climate change", "name": "Global climate change" }, { "source": "LIV", "id": "Global warming", "name": "Global warming" }, { "source": "LIV", "id": "Global warming -- Law and legislation", "name": "Global warming -- Law and legislation" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc818760/", "id": "RL34150_2007Aug27", "date": "2007-08-27", "retrieved": "2016-03-19T13:57:26", "title": "Climate Change: The EU Emissions Trading Scheme (ETS) Gets Ready for Kyoto", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20070827_RL34150_2414a8459a45a50801939ae93345783db4445ec1.pdf" }, { "format": "HTML", "filename": "files/20070827_RL34150_2414a8459a45a50801939ae93345783db4445ec1.html" } ], "topics": [] } ], "topics": [ "Economic Policy", "Energy Policy" ] }