1. Interaction between EU Carbon Trading and International Institutions: Synergies or Disruptions?
- Author
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Wettestad, Jørgen
- Subjects
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EMISSIONS trading , *ENVIRONMENTAL policy , *INTERNATIONAL agencies , *INTERORGANIZATIONAL relations ,UNITED Nations Framework Convention on Climate Change (1992). Protocols, etc., 1997 December 11 - Abstract
The EU emissions trading system (ETS) has now completed its three year pilot phase (i.e. 2005-7). Links have already been established between the EU ETS and the Clean Development Mechanism (CDM) under the Kyoto Protocol. Furthermore, global emissions trading under the Protocol is set to commence in 2008. Based on an emerging body of literature on institutional interaction, this paper will discuss various dimensions of the developing positive and negative interaction between the company focused EU ETS and the country focused global carbon trading and other relevant global institutions. More specifically, the following three cases of interaction will be analysed: First, the interaction between the Kyoto Protocol (as source) and the ETS as target. The first and seminal phase of this interaction started quite immediately after the adoption of the Protocol in late 1997. A second phase of interaction started in 2004 when the EU states started to develop national allocation plans (NAPs) where bringing in credits/allowances developed under the Clean Development Mechanism (CDM) and (subsequently) Joint Implementation (JI) became one compliance strategy. Second, the opposite relationship will be more closely examined. i.e. with the ETS as the source and the Kyoto Protocol institutions as targets. This can also be analysed in several phases, with the first phase starting after the adoption of the 2003 ET Directive and with the developing ETS possibly leading to a more rapid and extensive CDM development than would otherwise have been the case. A separate case of interaction deals with the possible role the ETS plays and could play for an emerging global carbon market. Third, attention will be given to a different type of interaction involving the ETS, namely interaction between the ETS and the International Civil Aviation Organization (ICAO). ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]
- Published
- 2008