Linking Emissions Trading Schemes

A link between emissions trading systems enables participants in one system to use allowances from another for compliance purposes facilitating trade flows across market boundaries. By expanding the scope and range of available mitigation options, linking promises greater diversity of abatement costs in the market and more cost effective achievement of greenhouse gas mitigation objectives. It also offers the potential to reduce competitiveness distortions arising from different carbon price levels.
With international negotiations often threatened by diplomatic stalemate, linking also provides a fallback alternative to the top-down international climate regime by offering a complementary bottom-up process through which national and regional emissions trading systems become increasingly integrated to eventually form a global carbon market.

Our synthesis report concludes that whilst indirect links between cap and trade markets could emerge through links to CDM or other crediting mechanisms, an OECD-wide company-level carbon market by 2015 is a highly ambitious goal. It is more likely that 2015 will be at the beginning of a period for establishing the first links between trading systems in different OECD countries.

Events:
Final Workshop: Paris, France, 23 June 2009.
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Reports

Case Study: Taiwan Trading Carbon across Jurisdictions - Working Paper
08 Jan 2013. Author: Michael Mehling, Dr. Sebastian Mielke, Prof. Chien-Te Fan, Hui-Chen, Chien, Wei-Chen Tsai

‘Prospects for a transatlantic carbon market: what next after the US midterm elections?’ - Working Paper
14 Apr 2011. Author: Michael Mehling, Andreas Tuerk and Wolfgang Sterk

Linking Emissions Trading Schemes - Final Report
20 May 2009. Author: Andreas Türk et al.

Prospects of linking EU and US Emission Trading Schemes: Comparing the Western Climate Initiative, the Waxman-Markey and the Lieberman-Warner Proposals - Working Paper
24 Apr 2009. Author: Wolfgang Sterk, MichaeL Mehling, Andreas Tuerk

Linking Workshop Agenda - Final Report
17 Mar 2009. Author: Andreas Tuerk

Linking the Australian Emissions Trading Scheme - Working Paper
01 Mar 2009. Author: Frank Jotzo & Regina Betz

Linking Existing and Proposed Greenhouse Gas Emissions Trading Schemes in North America - Working Paper
01 Feb 2009. Author: ERIK HAITES

Linking emissions trading schemes for international aviation and maritime emissions - Working Paper
01 Oct 2008. Author: Haites, E

Emerging Japanese Emissions trading schemes and prospects for linking - Working Paper
01 Oct 2008. Author: Kimura, H., Tuerk, A.

Prospects of linking the EU Emission Trading Scheme with a Federal US Emissions Trading Scheme along the lines of the Lieberman-Warner Proposal - Working Paper
01 Sep 2008. Author: Sterk, W

The role of land-based offsets in Emissions Trading Systems: Key design aspects and considerations for linking - Working Paper
01 Aug 2008. Author: Tuerk, A., Streck, C., Johns, J., Pena, N.

Developing the International Carbon Market. Linking Options for the EU ETS - Working Paper
01 May 2008. Author: Flachsland, C., Edenhofer, O.,Jakob, M., Steckel, Jan.

Options for improving the treatment of LULUCF in a Copenhagen agreement - Working Paper
22 Feb 2008. Author: Henschel, C., Ward, M., Rueter, S., Ashton, R., Bird, N., Frieden, D., Lehtonen, A., Schlamadinger, B., Silvius, M., Tuerk, A., and Zanchi, G.

CS Side Event at COP13 in Bali
11 Dec 2007. Author: Andreas Tuerk

Developing Supra-Eurpean Emissions Trading Schemes: An Effiency and International Trade Analysis - Final Report
29 Jun 2007. Author: Victoria Alexeeva-Talebi, Niels Anger

Emission trading beyond Europe: Linking schemes in a Post-Kyoto world - Final Report
. Author: Niels Anger