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Emissions trading in practice : a handbook on design and implementation (English)

As the world moves on from the climate agreement negotiated in Paris, attention is turning from the identification of emissions reduction trajectories—in the form of Nationally Determined Contributions (NDCs)—to crucial questions about how these emissions reductions are to be delivered and reported within the future international accounting framework. The experience to date shows that, if well designed, emissions trading systems (ETS) can be an effective, credible, and transparent tool for helping to achieve low-cost emissions reductions in ways that mobilize private sector actors, attract investment, and encourage international cooperation. However, to maximize effectiveness, any ETS needs to be designed in a way that is appropriate to its context. This Handbook is intended to help decision makers, policy practitioners, and stakeholders achieve this goal. It explains the rationale for an ETS, and sets out a 10-step process for designing an ETS – each step involves a series of decisions or actions that will shape major features of the policy. In doing so, it draws both on conceptual analysis and on some of the most important practical lessons learned to date from implementing ETSs around the world, including from the European Union, several provinces and cities in China, California and Québec, the Northeastern United States, Alberta, New Zealand, Kazakhstan, the Republic of Korea, Tokyo, and Saitama.

Details

  • Author

    Kerr, Suzi, Lubowski, Ruben, Ward, John, Marijs, Cor, Sammon, Paul, Guigon,Pierre, Haug,Constanze, Acworth, William, Leining, Catherine, Murphy, Leah, Wagner, Gernot, Rittenhouse, Katherine, Mehling,Michael Arthur, Matthes,Felix Christian, Duan,Maosheng

  • Document Date

    2016/01/01

  • Document Type

    Working Paper

  • Report Number

    108879

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2016/10/07

  • Disclosure Status

    Disclosed

  • Doc Name

    Emissions trading in practice : a handbook on design and implementation

  • Keywords

    European Bank for Reconstruction and Development;stakeholder engagement;Massachusetts Institute of Technology;marginal abatement cost curve;emission from fuel combustion;carbon dioxide equivalent;carbon price;carbon pricing;Climate Change Policy;unit of emissions;body of knowledge;annual emission;private sector participant;emissions reduction target;private capital flow;lower allowance prices;risk of leakage;amount of emissions;global average temperature;production of electricity;privileges and immunity;international energy agency;private sector actors;low-cost emission reductions;trade and competitiveness;global warming potential;default emission factors;climate change mitigation;effect of emission;energy efficiency policy;penalties for noncompliance;form of engagement;loss of competitiveness;behavior of producer;enforcement of penalty;emission intensity target;emission reduction units;unique serial number;stable policy framework;measure output;emission trading;carbon tax;price stability;free allocation;cost containment;local circumstance;market liquidity;historical emission;offset credits;emission source;carbon market;supply chain;emission profile;emissions intensity;global emission;price signal;data requirement;price convergence;climate action;raise revenues;allocation method;communication strategy;enforcement approach;international cooperation;market instrument;Public Spending;low-income household;market intervention;market mechanism;local priority;alternative policy;environmental integrity;regulatory environment;tax liability;policy option;emission allowance;transparent price;mutual recognition;public acceptance;market signal;lime kiln;policy tool;future use;geographic area;historical data;allowance allocation;emission impact;support policy;abatement potential;relative value;administrative challenge;international market;regulatory structure;industrial sector;disproportionate burden;point source;distortionary tax;institutional strength;carbon emission;legal framework;trading activity;tax scheme;polluter pays;price floor;public program;allocation decision;Investment Flow;economic efficiency;political discussion;climate agreement;uniform price;Clean Energy;educational program;policy package;improving energy;Resource Efficiency;auction revenue;Carbon Sink;investment pattern;international accounting;infrastructure management;research assistance;Advisory services;joint product;electricity import;government coordination;complementary measure;trade exposure;national jurisdiction;administrative efficiency;contingency plan;behavioral impact;commercial purpose;commercial building;aviation emission;agricultural emission;auction design;financial product;hard coal;political cooperation;price volatility;land use;allocation methodology;carbon leakage;geographic coverage;reporting obligation;complementary policies;public concern;governance framework;emission reporting;offset program;mitigation option;market rule;regulatory burden;administrative effort;monitoring requirement;original work;sole responsibility;copyright owner;short term impact;short-term impact;financial instrument;price variability;legal entity;transaction cost;reporting requirement;verification requirements;verification process;market information;guiding principles;legal entities;subnational jurisdiction;government revenue;Equal Opportunity;climate policy;empirical evidence;nitrous oxide;political support;total emissions;hybrid system;tradable allowance;oil company;oil companies;

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Citation

Kerr, Suzi Lubowski, Ruben Ward, John Marijs, Cor Sammon, Paul Guigon,Pierre Haug,Constanze Acworth, William Leining, Catherine Murphy, Leah Wagner, Gernot Rittenhouse, Katherine Mehling,Michael Arthur Matthes,Felix Christian Duan,Maosheng

Emissions trading in practice : a handbook on design and implementation (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/353821475849138788/Emissions-trading-in-practice-a-handbook-on-design-and-implementation