UK ETS launch reignites debate over emissions market linking
Opportunity to bring together UK and EU markets, but China’s new scheme lacks compatibility with other systems
The UK's launch last month of its emissions trading system (ETS) has brought the issue of linking markets back to the top of the agenda in climate policy circles. The existence of two carbon markets—the UK’s and the EU’s—in close geographical and economic proximity has highlighted the potential benefits of bringing such markets together. There is a strong consensus among proponents of carbon trading that bringing markets together generates efficiencies of scale, boosts liquidity and widens the scope of possible emissions reductions. But crucially, linking more markets around the world also places a hard limit on greenhouse gases on a higher proportion of the world’s emissions. According to t
Also in this section
23 April 2024
Europe must unlock cross-border CO₂ trade if it wants to build a viable CCS sector for the long term
16 April 2024
US and European oil majors snap up smaller players and look to accelerate development in a region deemed to possess all the key elements for successful CCUS deployment
15 April 2024
Demand for credits seen rising 20% this year despite issues around integrity and standardisation
11 April 2024
Volatile allowance prices and small size of voluntary market undermine ability to drive investment, says Oxford Institute for Energy Studies