Archive for the ‘Emissions Trading’ Category

In this piece I look at the strengths and weaknesses of the cap-and-trade provisions under the Waxman-Markey bill and the lessons that European policymakers could learn from the US approach. Strengths Coverage The Waxman-Markey provisions cover all six greenhouse gases and 86 percent of US GHG emissions. Once we take into account the inclusion of […]


The following graphs provide some insights into the disposition of allowances under the Waxman-Markey bill.  The graphs illustrate just how innovative US policy makers have been in their distribution of allowances under the cap-and-trade provisions of the bill. US policy makers have made the most of the valuable resource that allowances represent. They have drafted […]


A very quick comparison of the proposed Waxman-Markey Cap-and-Trade Scheme, the EU Emissions Trading Scheme and the Carbon Pollution Reduction Scheme in Australia. ELEMENT WAXMAN-MARKEY EU ETS CPRS EMISSIONS TARGETS 3% below 2005 levels by 2012. 20% below 2005 levels by 2020. 83% below 2005 levels by 2050. 21% below 2005 levels by 2020 in […]


If we take a look at some of the numbers behind the Waxman-Markey Bill, we get a clearer sense of its ambition, its limitations and the winners and losers. Content of the Bill From reading much of the coverage of the bill, one might be forgiven for believing that the bill is nothing more than […]


I thought it would be instructive to look at the treatment of CERs/ERUs under the EU ETS, with a view to the light this sheds on demand and supply within the EU ETS. CERs and ERUs are eligible under the EU ETS – but the quantity of CERs/ERUs that can be used for compliance are […]


Over the last half of 2008 EUA and CER prices declined markedly. EUAs prices have fallen from their mid-2008 high of €30 to their current levels of just under €12; while CERs have fallen from their mid-year highs of €24 to current levels just above €10. The spread between EUA and CER prices has also […]