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Europe

Building with EU flags
(Photo: Ewan McIntosh/flickr.com)

The EU is to date the single largest source of demand for international carbon credits. More specifically, the EU Emissions Trading Scheme allows installations covered by the scheme to fulfil a part of their obligations through using international carbon offsets. Political decisions at the EU level are therefore highly influential for the development of international carbon mechanisms.

Solidarity and Efficiency - EU Effort Sharing: A door to flexibility and market mechanisms

April 2015 - In October 2014, the European Council set out the basic principles for and quantitative cornerstones of EU climate change policy for the period 2020 to 2030 (see CMR 4/2014). As in the period 2013 to 2020, reductions in sectors not covered by the EU Emissions Trading Scheme (ETS) are largely to be shared among the member states according to a GDP per capita formula. This approach does not necessarily lead to a cost-effective distribution of emission reductions. There exists considerable, low-cost potential in poorer countries, while richer member states like Denmark and Luxembourg, have already introduced a whole range of reduction measures, especially in the efficiency sector. This means that the remaining potential can only be tapped at higher costs than those involved in reduction activities in, for example, Romania and Bulgaria. This is also evident in the potential analysis contained in the EU Commission’s Impact Assessment, where a cost-effective distribution of reductions was calculated which would lead to greater reductions in poorer countries than would a GDP-based distribution. more

Not enough domestically, nothing (yet) internationally

April 2015 - In October 2014, the EU set out its climate change target to reduce emissions across its member states by 40 percent by 2030. When looked at internationally, this is quite a pledge. It sparked hopes for the use of the Market Mechanisms on top of the domestic EU target. However, these hopes have not yet been fulfilled. The article summarizes the decisions and its implications for the UNFCCC negotiations. more

Early Mover - The EU 2030 Package and what it means for Markets

December 2014 - On October 23 and 24 2014, the European heads of state convened for their quarterly meeting in their capacity as the European Council and came up with a triad of targets for reducing greenhouse gases (GHG), fostering renewable energy use and increasing energy efficiency - along with a detailed outline of the envisaged legislation.
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Getting the carbon market in shape for global climate action

May 2014 - A global carbon market can play a crucial role in achieving global climate protection targets, says State Secretary at the Federal Environment Ministry Jochen Flasbarth. At the opening ceremony of the CarbonExpo international trade fair. more

Use of CERs and ERUs in the third EU ETS trading period

February 2013 - In Doha it was agreed that the CDM would be continued without a break, and a procedure would be developed to accelerate the issuance of ERUs under JI. Rules on the use of CERs and ERUs in the EU Emissions Trading Scheme (EU ETS) promise to be complex in the future more