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Fixing the EU Emissions Trading System? Understanding the Post-2012 Changes

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  • Jon Birger Skjærseth

    (Jon Birger Skjærseth is Senior Research Fellow at the Fridtjof Nansen Institute. His research interests are international environmental cooperation, EU environmental policy, national environmental policy and the strategies of multinational companies, particularly in the fields of climate policy and marine pollution. He has published numerous books and articles, including: EU Emissions Trading: Initiation, Decision-making and Implementation (2008, with Jørgen Wettestad); International Regimes and Norway's Environmental Policy: Crossfire and Coherence (2004); Climate Change and the Oil Industry: Common Problem, Varying Strategies (2003, paperback edition, 2009 with Tora Skodvin), Environmental Regime Effectiveness-Confronting Theory with Evidence (2002, with Edward L. Miles, Arild Underdal, Steinar Andresen, Jørgen. Wettestad and Elaine M. Carlin) and North Sea Cooperation: Linking International and Domestic Pollution Control (2000).)

  • Jørgen Wettestad

    (Jørgen Wettestad is Senior Research Fellow at the Fridtjof Nansen Institute in Oslo, Norway. His main research interests include EU energy and climate policy, the functioning and effectiveness of international environmental regimes, and domestic air pollution and climate politics. His most recent book is (together with Jon Birger Skjærseth) EU Emissions Trading: Initiation, Decisionmaking and Implementation (2008). He has published numerous articles on EU emissions trading.)

Abstract

This article explains why the significant changes in the EU Emissions Trading System (EU ETS) for the 2013-2020 phase were adopted in 2008. The combination of a more stringent EU-wide cap, allocation of emission allowances for payment, and limits on imports of credits from third countries have strengthened the system for the post-2012 period. This will promote reduction in greenhouse gases compared to the old system. The main reasons for these changes are, first, changes in the positions of the member states due to unsatisfactory experience with performance of the EU ETS so far. Second, a "package approach" where the EU ETS reform was integrated into wider energy and climate policy facilitated agreement on the changes. Third, changes in the position of nonstate actors and a desire to affect the international climate negotiations contributed to the reform. (c) 2010 by the Massachusetts Institute of Technology.

Suggested Citation

  • Jon Birger Skjærseth & Jørgen Wettestad, 2010. "Fixing the EU Emissions Trading System? Understanding the Post-2012 Changes," Global Environmental Politics, MIT Press, vol. 10(4), pages 101-123, November.
    • Handle: RePEc:tpr:glenvp:v:10:y:2010:i:4:p:101-123
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    Cited by:

    1. Raymond, Leigh, 2019. "Policy perspective:Building political support for carbon pricing—Lessons from cap-and-trade policies," Energy Policy, Elsevier, vol. 134(C).
    2. Jørgen Wettestad & Lars H. Gulbrandsen, 2022. "On the Process of Including Shipping in EU Emissions Trading: Multi-Level Reinforcement Revisited," Politics and Governance, Cogitatio Press, vol. 10(1), pages 246-255.
    3. Sato, Misato & Rafaty, Ryan & Calel, Raphael & Grubb, Michael, 2022. "Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System," LSE Research Online Documents on Economics 115431, London School of Economics and Political Science, LSE Library.
    4. Jon Skjærseth, 2013. "Governance by EU emissions trading: resistance or innovation in the oil industry?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(1), pages 31-48, March.
    5. Brendan Moore & Andrew Jordan, 2020. "Disaggregating the dependent variable in policy feedback research: an analysis of the EU Emissions Trading System," Policy Sciences, Springer;Society of Policy Sciences, vol. 53(2), pages 291-307, June.
    6. Ma-Lin Song & Wei Zhang & Xiao-Ming Qiu, 2015. "Emissions trading system and supporting policies under an emissions reduction framework," Annals of Operations Research, Springer, vol. 228(1), pages 125-134, May.
    7. Ruf, Julia Anna, 2017. "A policy analysis of the EU Emissions Trading System and its crisis," IPE Working Papers 82/2017, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    8. Torbjørg Jevnaker & Jørgen Wettestad, 2017. "Ratcheting Up Carbon Trade: The Politics of Reforming EU Emissions Trading," Global Environmental Politics, MIT Press, vol. 17(2), pages 105-124, May.

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