The European Union’s Emissions Trading System: Climate Policymaking Model, or Muddle? (Part II)

Abstract

In the first half of this Article, I outlined the genesis of the European Union’s Emissions Trading System (EU-ETS) and the history of its implementation during its first two phases from 2005 to 2008. In the second half o f this Article. I will I) outline the contours of implementation of the EU-ETS in Phase 3; 2) examine the implications of recent decisions by the European Council and Commission for implementation of Phase 4; 3) assess the effectiveness of the EU-ETS to date in meeting key climate and energy objectives in what continues to be characterized as the “cornerstone” of climate policymaking in Europe: and 4) suggest some potential methods to strengthen the framework, or move away from it as the primary climate policy mechanism to reduce emissions.

Keywords: European Union Emissions Trade System

JEL Classification: K33