Emissions trading have not been too successful in reducing carbon but Stig Schjoleset remains optimistic…
First some background:
“Currently, around 13 percent of global emissions are facing a carbon price, either as carbon taxes or mandatory emissions trading schemes, according to the latest State and Trends of Carbon Pricing report from the World Bank. This will go up to between 20 and 25 percent if the Chinese national Emission Trading System (ETS) will be implemented this year as planned. Of the 189 countries having made emission reduction pledges for the Paris Climate Agreement, currently 40 countries are putting a price on carbon and some 60 more are considering carbon pricing schemes.”
But the price has declined sharply in Europe:
“Taking 2016 – the first year after the adoption of the Paris Agreement – as an example, we had an average carbon price of €5.36/t in the European carbon market (EU ETS). That is a 31 percent drop from the previous year and far below the €20-30/t needed to trigger key abatement measures like fuel switching from coal to gas in most countries.”
And the problem:
“The fundamental problem is of course that policy makers have been afraid to set ambitious reduction targets and/or to implement policies to achieve them. Without ambitious targets you will not have large emission reductions – regardless of whether the preferred policy tool is taxes, direct regulations or emissions trading.”
The rest is here: http://energypost.eu/emissions-trading-time-make-work/
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