emissions trading scheme Articles
-
The emerging issue of the emissions trading schemes in Europe and Australia
This report covers an overview of the origins of the carbon trading market and the mechanics involved in trading carbon emission units. The report seeks to analyse the carbon trading market in Europe and Australia. The carbon trading market is reviewed with an overall concern for the role government regulation plays in the market, as well as the impact of introducing an emission trading scheme on ...
-
Estimating the 'value at risk' of EUA futures prices based on the extreme value theory
This paper employs the Extreme Value Theory (EVT) to measure the 'Value at Risk' (VaR) of EUA futures prices. The results show that during the sample period: first, the EVT approach can be used to reliably measure the extreme risk of carbon futures markets of the European Union Emissions Trading Scheme, both for Phase I and Phase II. Second, the downside extreme risk of carbon futures market ...
-
Estimation of CO2 shadow price in Chinese provinces: an output distance function approach
As the low–carbon issue become increasingly critical in the world. The marginal abatement cost (shadow price) of CO2 emission is a determinant in the carbon emissions trading market. This paper estimates the CO2 shadow price of different Chinese provinces based on the parametric approach: the output distance function. The results show that the average CO2 marginal abatement cost is 1.8 Y/T (0.28 ...
-
Greenhouse Gas Emissions trading and duties of the state: A preliminary review of Alberta’s specified Gas Emitters Regulation
In July 2007 the oil endowed Canadian province of Alberta launched the first compliance emissions trading scheme for greenhouse gases in North America under its Specified Gas Emitters Regulation. This paper reviews key aspects of the programme including scope, performance credit trading and project offsetting with comparative reference to other carbon emissions trading schemes. The paper ...
-
The state of carbon finance in Europe: a 'SWOT' analysis of the EU's Emissions Trading Scheme
As Phase III of the European Union's Emissions Trading Scheme (EU ETS) will begin in January 2012 when airlines operating flights to or from Europe will have to buy carbon permits to help offset their emissions under EU legislation, carbon finance and trading in Europe is set to proceed to a new horizon. Launched in January 2005, EU ETS is one of the established multilateral measures in the ...
-
CO2 prices and portfolio management
Since the launch of the European Union Emission Trading Scheme (EU ETS), the interest in the trade of EUAs is constantly increasing among academics and market participants. The objective of this paper is twofold: (a) a detailed description of this new market is provided for portfolio managers and (b) a comprehensive study of the implications of including Phase II EUAs in diversified portfolios is ...
-
The risks and opportunities in starting a carbon trading firm within the carbon marketplace
This paper looks at the viability of starting a carbon trading firm in Australia, based on the understanding and nature of carbon trading and its acceptance and implementation in the economy. The main function of the firm is to work as a broker on behalf of organisations or individuals for buying and selling carbon credits. A broad overview of the evolution of the carbon trading market and the ...
-
EU emissions trading scheme to bring small carbon savings
EU emissions trading scheme to bring small carbon savings Campaign group call for tighter caps on carbon emissions covered by the ETS in Europe each year. A new report by carbon emissions trading campaign group Sandbag predicts that the five year period of the EU’s emissions trading scheme (ETS) ending in 2012 is set to deliver carbon savings of less than a third of 1% of total carbon ...
By Vital Energi
-
A comparative analysis of city–based emission trading schemes: key design and management factors for environmental cost effectiveness
With more than half the world's population living in urban areas, cities have become a major source of local and global atmospheric pollution. Originally developed in the 1990s to decrease local pollution, Local Emission Trading Schemes (ETSs) are now emerging as a promising cost–efficient instrument to achieve local GHG emissions reductions. This paper compares four existing city–based ETS ...
-
Failed announcement on EU ETS generates uncertainty in carbon market
Carbon traders criticise European Commission’s failed announcement on carbon credits for damaging investor’s confidence. The Carbon Markets and Investors Association (CMIA) has widely criticised the European Commission's change in its decision to ban the use of industrial gas offset credits in the EU’s emissions trading scheme (ETS), saying that the uncertainty could restrict ...
By Vital Energi
-
A solution to climate change economics - a carbon swap bank
The original impetus of the Copenhagen Treaty in 2010 to solve the problem of climate change using a carbon emissions trading scheme has hit ground zero. The failure to advance various proposed bills in the USA and Australia has faltered on the role of agriculture, the failure to ensure that high carbon dioxide polluting industries actually alter technologies, the creation of excessive ...
-
Inside China’s emissions trading scheme: First steps and the road ahead
China launched its first pilot emission trading program this past June. This development is potentially a major marker in the country’s efforts to reduce greenhouse gas (GHG) emissions. The Shenzhen Emissions Trading Scheme (ETS) program will cover some 635 industrial companies from 26 industries. This is the first of seven proposed pilot GHG cap-and-trade schemes in China, which the ...
-
Weak-form efficiency of European Union emission trading scheme – evidence from variance ratio tests
In this paper, we applied single period and multiple period variance ratio (VR) tests to European Union allowance (EUA) spot and futures data since their availability in June 2005 and April 2005 respectively up to the end of January 2010. Comparing Phase 1 (2005-2007) and Phase 2 (2008-2012), we find that the products traded in Phase 2 show weaker rejection against the random walk hypothesis than ...
-
An empirical study on the interaction between EUA futures, coal, natural gas and electricity
This paper uses a Vector Error Correction Model (VECM), a method to estimate the adjustment speed of variables toward their long–run relationship in the short run, to investigate the dynamic relationship between the prices of EUA, coal, natural gas and electricity futures. It finds that there is a long–run equilibrium relationship between them. Short–run relationships between them are also ...
-
Crediting co2 sequestration – An alternative approach to integrating CCS into the EU ETS
Carbon Capture and Storage (CCS) technologies are currently discussed as a promising measure by stakeholders in the power industry sector, who see it as an opportunity to both continue using fossil fuels and to comply with the challenges of climate protection by reducing carbon dioxide emissions. Initial demonstration projects have already been launched.1 According to the European Commission, it ...
-
A counterfactual simulation exercise of CO2 emissions abatement through fuel–switching in the UK (2008–2012)
This paper uses the E–simulate model of electricity generation to estimate how much the stacking order of different technologies changes when a carbon price is introduced. Different coal and gas price scenarios are explored, and some sensitivity analysis is made of the relative market share of coal and gas under various carbon price levels. The objective of the paper is to estimate how much ...
-
EU Emissions Trading
Untitled Document The European Union is committed to global efforts to reduce the greenhouse gas emissions from human activities that threaten to cause serious disruption to the world’s climate. Building on the innovative mechanisms set up under the Kyoto Protocol to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) — joint ...
-
Carbon Reduction Commitment (CRC) - Understanding complexity, mitigating risk, and capturing opportunity
Implications of the Carbon Reduction Commitment (CRC) are quite far-reaching and will apply both within the public and private sectors across the United Kingdom. About 20,000 organisations will likely be affected, based on how much electricity they consumed in the baseline year of 2008. Disclosures will be required for submission to the Environment Agency by the summer of 2010 at which time ...
By Accruent
-
Sweden: Decoupling GDP growth from CO2 emissions is possible
Sweden is proud to join forces with Sustainable Energy for All (SE4All), convening in New York this week. Energy is one of the most decisive issues of our age. Without secure access to energy, we won’t achieve real and lasting poverty reduction. Without the expansion of clean energy, we won’t be able to stop climate change. With business as usual and no significant carbon emission ...
-
Mandatory Carbon Reporting: It’s coming down the track
For some companies, reporting carbon emissions will require a major shift in their culture, for others it will be business as usual. Which group are you in? By Michael Gifford, Head of Operations & Delivery Partners and Morgan Jones, Standard Certification Manager The government recently announced that it will be introducing Mandatory Carbon Reporting (MCR) for all UK incorporated 'quoted' ...
By Carbon Trust
Need help finding the right suppliers? Try XPRT Sourcing. Let the XPRTs do the work for you