Rationality of the EU ETS: Holding it Together or Preventing Deeper Changes?

Jan Šťáhlavský, Stockholm Resilience Centre, wrote a policy paper on the topic of EU's ETS ( European Union Emissions Trading System). This paper will serve as a background material for a second debate from our project 'Prague Climate Talks'. The event will take place on October 3rd, 2017 at European house.

The EU ETS is often referred to as the most important climate policy instrument of the EU, yet it is not without flaws. It is the largest carbon trading system in use, often called the pioneer of carbon trading. This policy paper focuses on presenting the rational underpinning of the EU ETS and its significance in the climate change governance under the Paris regime. It focuses on the biggest flaw of the system – the oversupply of cheap allowances - and its causes.

 Download the full paper hrough the PDF buttn on the right of this article.