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Northeast Asian countries are emerging as major players in development and operation of carbon markets. Already connected through economic ties, these countries also share environmental challenges. Expert reports have therefore called for the countries to link their respective carbon markets, as this could offer economic, environmental, and strategic benefits. With this report we offer an overview of the status of carbon markets in key economies in Asia today. Our main focus is China, Japan and South Korea, but we also cover Kazakhstan. All four countries have developed and operated carbon markets. This report identifies positive experiences as well as existing bottlenecks and barriers to a possible future linking of carbon markets among these countries. We also give a brief introduction to markets that are running, planned or have been shelved in the Asia-Pacific region. The report looks into the following aspects: what is the status of carbon markets in these key economies; what are key general lessons about the linking of carbon markets so far; what are the main similarities and differences between main Asian carbon markets; what are key challenges and prospects for a linked North Asian carbon market. We find that countries are increasingly showing interest in employing market mechanisms to control GHG emissions. From a global framework perspective, the upcoming COP26 in Glasgow 2021 may contribute to setting the stage for international carbon trading. We note positive trends and opportunities for linking between carbon markets in North East Asia. A pull in a positive direction is that Japan, South Korea and China initiated academic exchanges on potential for linking emissions trading systems in the future; and they already have various types of carbon markets at the national or subnational level. Japan, South Korea and China all have carbon-neutrality goals (of 2050, 2050 and 2060 respectively), which may provide an incentive to explore the possibilities of linking carbon markets. We find that an ETS linking between Korea and China appears more feasible, given the many similarities between the national schemes. However, considerable differences remain in policy design and implementation status: the carbon markets differ in size, structures, design, and the markets are at different stages of development. Finally, the report has highlighted the need for a deeper understanding of several aspects of carbon-market linkage. Establishing a North East Asian regional carbon market hub could have economic, environmental, and strategic benefits for the region, as well as globally. Further in-depth study is needed of how to resolve the challenges involved in linking differently structured, designed and functioning markets. [ABSTRACT FROM AUTHOR]

A market research report related to environmental and carbon markets is presented from publisher EnerKnol on a proposed cap-and-trade program approved by the Virginia Air Pollution Control Board to reduce carbon dioxide emissions in the power sector with the Regional Greenhouse Gas Initiative.

The article reports that the California legislature has agreed to an extension of the cap and trade beyond 2030 thereby ending the confusion regarding the state's core climate program.

A market research report regarding North American environmental markets and emissions is presented from publisher EnerKnol Research which mentions topics including the results of a California carbon auction showing market volatility, cap-and-trade programs, and market activity.

A market research report regarding U.S. environmental markets and emissions is presented from publisher EnerKnol Research which mentions that a proposal to comply with the Environmental Protection Agency’s Clean Power Plan has been issued by the California Air Resources Board.

A market research report regarding U.S. environmental markets and emissions is presented from publisher EnerKnol Research which mentions the results of the 30th quarterly carbon auction released by the Regional Greenhouse Gas Initiative, market-based emissions trading, and market confidence.

This report investigates why the offshore oil and gas sector receives free allowances in the EU ETS, during phases 3 (2013-2020) and 4 (2021-2030). From the outset, free allocation has been undermining the environmental effectiveness of the ETS and few arguments supported that the offshore oil and gas production was exposed to so-called 'carbon leakage'; risk of industrial relocation to non-mitigating countries due to ETS costs. While allowances are distributed through auctioning as the principle rule, certain carbon leakage exposed industries, like the oil industry, are instead granted free allocations. The continuation of free allocation to the offshore oil gas sectors until 2030 is explained by theoretical frameworks from historical institutionalism and policy entrepreneurship. In-depth interviews with 20 informants and process-tracing from 2006-2017 gives most support to institutional explanations. In the phase 3 revision process in 2006-2008, the establishment of severe carbon leakage risk and the alliance of energy-intensive industries pressured EU policymakers to continue free allocation. The offshore industry's strategies barely made any impact. During the phase 4 revision between 2014-2017, the negative feedbacks on carbon leakage risk convincingly explains why oil extraction gets prolonged free allocation, while the oil industry exercised 'failed entrepreneurship' to preserve gas production's free allowances. These findings suggest that business power in climate policy is facilitated by institutional perceptions, and less so by the industry's own strategies. This indicates that global corporations cannot just 'set the rules' in international climate policy. [ABSTRACT FROM AUTHOR]

The article discusses the effects of carbon pricing on the indicators of competitiveness of various countries as used in the literature, as well as the environmental effects of carbon prices as of late March 2015. Also cited are the European Union emissions trading system (EU ETS), the Climate Change Levy in Great Britain, and the factors that affect a country's competitiveness including labour skills, labour market regulation, and commercial framework.

The report on the projected impact of the U.S. Environmental Protection Agency (EPA) emissions regulations and legislative actions on the energy industry in 2015 is presented. Topics discussed include the policies affecting energy independence and its environmental impacts, legislators' aim for gas and oil infrastructure and export bills, and the expected effect of energy policies on renewable and conventional energy industries.

The report is presented on the aim of the U.S. Environmental Protection Agency (EPA) to mitigate methane emissions through green completion technologies. Topics discussed include the proposed rules of EPA to require reduced emission completion technologies to lessen oil and gas well methane emissions, possible additional costs by these regulations to constrained industry, and the probability that they will leverage the existing technologies.

The report is presented on New York's request for proposal for the emissions reduction technologies for electric generators and the moderation of future Regional Greenhouse Gas Initiative auction prices. Topics discussed include the market-ready emissions reduction technologies funding for electric generation sites, indirect impact of technology investments on the emissions reduction efforts nationwide, and the balance between emissions and allowance supplies.

Copyright of OECD Environment Working Papers is the property of Organisation for Economic Cooperation & Development and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article examines the carbon prices that have emerged from the implementation of energy taxes, vehicle taxes and the European Union (EU) Emissions Trading System in Germany. It discusses the extent to which taxes on energy products and vehicles reflect the value of greenhouse gas (GHG) emissions. The use of feed-in tariffs to promote electricity generation from renewable sources is also reviewed.

The article discusses the utilization of hydroelectricity in Europe accounting for 23% in power generation, the compliance of hydro power initiatives with the European Emissions Trading Scheme, Habitat Directive and the 2000 Water Framework Directive, and the installed capacity in various countries such as Norway at 29,000 megawatt, France at 25,2130 MW, and Italy at 21,120 MW.

Although energy use has declined substantially in absolute terms since the Soviet era, Russia still has one of the most energy-intensive economies in the world. The high degree of energy intensity, combined with relatively carbon-intensive energy use, results in Russia accounting for a disproportionately large share of global carbon emissions: it is the sixth largest economy in the world in PPP terms but the fourth largest emitter of greenhouse gases. Moreover, low energy efficiency contributes to poor air quality, and Russia has one of the highest rates of premature mortality attributable to air pollution in the world. The scope for profitable energy efficiency investment in Russia is huge, and indeed a good deal is already happening, but a number of constraints and market failures make this process slower than optimal. This means that improving energy efficiency should be a top priority for government policy in Russia. Ambitious official targets for energy efficiency gains have been established, but so far the policy measures identified appear insufficient to meet them. The clearest imperative is to remove government interventions that result in below-market prices and to introduce new policy instruments to ensure that negative externalities associated with fossil fuel combustion are reflected in prices. The installation of meters for energy use should also be speeded up, and there is scope for greater sophistication in tariff structures to allow marginal costs to be better reflected in prices facing consumers. A number of other complementary measures may be warranted, but should be subject to careful cost-benefit analysis. [ABSTRACT FROM AUTHOR]

Copyright of OECD Environment Working Papers is the property of Organisation for Economic Cooperation & Development and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article discusses about the role of emissions trading systems (ETSs) in managing greenhouse gas emissions worldwide. ETSs have the potential in generating funding for technologies, solutions, and programs in mitigating the impact of climate change through a wide and ambitious climate policy. The proposed ETS will use the Organization for Economic Cooperation and Development ENV-Linkages framework to assess the economic effects of environmental policies through various energy sources.

The article describes scenarios under which voluntary buyers could buy and cancel allowances from compliance markets as an alternative to offsets. It cites examples of cancellation of tradable compliance units such as carbon dioxide allowances from the European Union Emissions Trading System (EU-ETS) and the Regional Greenhouse Gas Initiative (RGGI). It assesses the advantages and disadvantages of cancelling tradable compliance units.

Copyright of OECD Environment Working Papers is the property of Organisation for Economic Cooperation & Development and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article focuses on the need for the creation an internal pan-European energy market for achieving energy security in Europe. It discusses the need for a super-grid and a strong regulator, and the separation of gas and electricity networks from supply businesses. It mentions that the European Union (EU) Emissions Trading Scheme (ETS) could be replaced by a carbon tax administered by member states, which would create a revenue stream to fund renewable and clean sources of energy.

Japan, a relatively energy-efficient country, has been active in combating climate change. Under the Kyoto Protocol, Japan is committed to reducing greenhouse gas emissions by 6% relative to 1990 over the period 2008-12. As of 2007, however, its emissions were up by 9%. Japan has relied primarily on voluntary measures, which are monitored by the government, without binding commitments or price signals on carbon. It is essential to improve the policy framework to achieve its ambitious longer-term target of a 60% to 80% emission reduction by 2050 in a cost-effective manner. Japan should shift from voluntary measures to market-based instruments, notably a mandatory and comprehensive emission trading scheme, supplemented if necessary, by carbon taxes in areas not covered by trading, which minimise abatement costs and promote innovation to reduce emissions. Trading schemes should be linked to those in other countries, while expanding Japan's use of a well-functioning Clean Development Mechanism. Continued public support for R&D in emission reduction technology, particularly in basic research, is important. [ABSTRACT FROM AUTHOR]

European energy policy faces a number of interrelated challenges, including making the transition to a low-carbon economy, increasing cross-border competition in electricity and gas markets and diversifying Europe's energy supply. The EU has developed a comprehensive strategy in all of these areas, encapsulated in 2020 targets for reducing greenhouse gas emissions, raising renewable energy and increasing energy efficiency. These targets are underpinned by an Emissions Trading Scheme, legally binding reduction commitments by member states for the emissions not covered by the trading scheme, the third energy liberalisation package and the Energy Security and Solidarity Plan. The EU should be applauded for the significant steps it has taken; the EU's environmental actions and targets are very ambitious and will increase the likelihood of a global climate agreement later in 2009. But there is also room for improvement. To ensure that the transition to a low-carbon economy is achieved at a low cost, the EU should seriously consider including all transport sectors in the Emissions Trading Scheme when practical and appropriate, and ensure that only sectors rigorously identified as being at genuine risk of carbon leakage should continue to receive free allowances until 2020. Consideration should be given to making use of an EU-wide market instrument to deliver the EU's renewable energy target, and it will be important to ensure that the 10% renewable transport fuel target efficiently achieves its objectives of sustainability and security of supply given the high cost of many renewable transport fuels. Measures to raise energy efficiency will have to be designed carefully so that the overall cost of mitigation is not raised. The Commission's third energy market liberalisation package should be strengthened by requiring full ownership unbundling of transmission service operators and ensuring the powers of the proposed Agency for Co-operation of Energy Regulators are broad enough to contribute effectively to a truly single European energy market. [ABSTRACT FROM AUTHOR]

New Zealand's living standards remain well below the OECD average. This is entirely attributable to persistently low labour productivity, which in turn is related to economic geography as well as structural policy factors. The small size and remoteness of the economy diminish its access to world markets, the scale and efficiency of domestic businesses, the level of competition and proximity to the world's technology frontier. This points to the need for a "New Zealand policy advantage", that is, a set of structural policies attractive and welcoming enough to overcome the geographic handicap and attract the drivers of prosperity -- investment, skills and ideas -- to New Zealand. The reforms of the 1980s and 1990s laid much of the groundwork for creating this advantage and for a pickup in productivity growth. But in recent years, New Zealand has lost ground relative to its OECD peers. The reform focus has shifted away from growth and the government has introduced a large quantity of often poor-quality regulation. Policies should be refocused around the productivity goal in a number of areas, beginning with those covered in this chapter, namely international trade, the business climate for domestic and foreign investment, public-sector efficiency, infrastructure, innovation and natural-resources management. This chapter also evaluates the recently legislated emissions trading scheme through a productivity lens. [ABSTRACT FROM AUTHOR]

The article provides an analysis on worldwide issues affecting the energy industry. These include the challenges facing Apron concerning its plan of acquiring gas reserves in Libya, the impact of phase II European Union Emissions Trading Scheme (EU ETS) which resulted to lower EU Allowance (EUA) of E22.70, and the plan of Russian oil company Rosneft OAO to market fuel in Italy.

The article presents a comparison of the proposed carbon dioxide cap-and-trade system and other proposals to reduce greenhouse gas emissions in the U.S. It compares standards-based policies with the cap-and-trade system with regard to environmental effectiveness, cost effectiveness and distributional equity. It explains how carbon tax and cap-and-trade differ in the way that a carbon price signal is determined.

The article presents an economic assessment of the proposed carbon dioxide cap-and-trade system to reduce greenhouse gas emissions in the U.S. It provides a qualitative examination of the implications of the system for both short-term cost effectiveness and long-term dynamic incentives for cost-saving technological change. It considers the distributional effects of the proposed system, including illustrative numerical estimates of the sectoral cost impacts.

The need for a domestic U.S. policy that seriously addresses climate change is increasingly apparent. A cap-and-trade system is the best approach in the short to medium term. Besides providing certainty about emissions levels, cap-and-trade offers an easy means of compensating for the inevitably unequal burdens imposed by climate policy; it is straightforward to harmonize with other countries' climate policies; it avoids the current political aversion in the United States to taxes; and it has a history of successful adoption in this country. The paper proposes a specific cap-and-trade system with several key features including: an upstream cap on CO2 emissions with gradual inclusion of other greenhouse gases; a gradual downward trajectory of emissions ceilings over time to minimize disruption and allow firms and households time to adapt; and mechanisms to reduce cost uncertainty. Initially, half of the program's allowances would be allocated through auctioning and half through free distribution, primarily to those entities most burdened by the policy. This should help limit potential inequities while bolstering political support. The share distributed for free would phase out over twenty-five years. The auctioned allowances would generate revenue that could be used for a variety of worthwhile public purposes. The system would provide for linkage with international emissions reduction credit arrangements, harmonization over time with effective cap-and-trade systems in other countries, and appropriate linkage with other actions taken abroad that maintains a level playing field between imports and import-competing domestic products. [ABSTRACT FROM AUTHOR]

The article offers news briefs related to energy industries in Europe. RWE has improved its earnings by gaining a seven percent net income increase due to the positive operating performance generated by its energy business in continental Europe. Meanwhile, the European Commission reports a decrease in the amount of carbon emitted under the emissions trading scheme implemented in January 2005. The German utility E.ON has revealed plans to build a clean coal plant in Great Britain.

For proponents of the view that the introduction of carbon pricing globally should be a key response to the serious climate change challenge, the post-2010 phase has been a bit mixed. The EU, the emissions trading frontrunner, has experienced increasing trouble. Still, around the globe, a number of other emissions trading systems have started operating. Not least the problems experienced by the EU ETS have put the spotlight on the design question: how to design systems that produce a stable and reasonably high carbon price while interacting well with other policy instruments. Furthermore, as systems develop at different speeds and with differing design properties, interaction between the systems becomes a pertinent topic, linking up to the long and rich debate in political science about policy diffusion. This report examines the evolving design properties of the EU ETS and emissions trading systems in Australia, California and China, and takes stock of knowledge regarding the role of policy diffusion in shaping these systems. Australia is an interesting case of a proposed system that collapsed under intense domestic political-economic pressures. California is significant as a case of political leadership in the USA. The establishment of seven sub-national pilot systems in China, the world's biggest greenhouse gas emitter, is potentially of great importance. On the basis of these examinations, the report identifies important gaps in existing knowledge on the role of policy diffusion and contributes to the research agenda in this area. [ABSTRACT FROM AUTHOR]

The article presents information on economic policy trends in Slovakia as of September 2011. Particular focus is given to progress made by the fiscal consolidation effort, as well as the target deficit in 2011. It cites absence of revenue from selling emission quotas as one of the main risks to the budget. Also included are information on privatisation plans and Slovakia's involvement in a new bailout package for Greece.

The article presents information on economic policy trends in Australia as of August 2011. Particular focus is given to the government's proposed carbon-pricing scheme. It notes the potential benefit of the carbon tax to the government's 2012-13 budget. Also included are information on transitional assistance for electricity generators and the Coal Sector Jobs Package.

The article reports that Copenhagen Climate Change Conference will not deliver caps and floors for the carbon price. It is stated that Europe will try to retain and develop the Kyoto Protocol and the EU Emissions Trading Scheme (EU ETS) free market mechanism to achieve its emissions reduction targets at Copenhagen. It mentions that EU ETS unconstrained pricing has led to highly volatile and inefficient carbon prices and so calls for a floor on the price of carbon.

The article presents a review on the economic policies in France as of January 2010. It states that the Constitutional Court had rejected the planned introduction of a new carbon tax and notes the abolition of the local business tax called taxe professionnelle (TP) and replace it with contribution économique territoriale (CET). It outlines the budget deficit in the country and state borrowing is anticipated to reach a record level.

The article offers an economic policy outlook for Australia for 2009 to 2010. Plans of the government to reintroduce legislation that would implement a carbon emissions trading scheme in 2011 are noted. For 2009-2010, the government expects its stimulus measures to result in fiscal deficits as well as boost the economy by an average of around 2.4% of gross domestic product (GDP). To prevent the economy from going into recession, the Reserve Bank of Australia (RBA) reduced its main policy interest rate to 3% between September 2008 and April 2009. INSET: In focus.

The article provides an overview of the Emission Trading Scheme (EUTS) by the European Union (EU) in Europe. It showed that in phase 1, it saw some of the heaviest polluting countries including Poland, where ratio of carbon dioxide (CO2) emitted to power was highest. However, in phases II and III, Poland and its smaller central and Eastern European neighbors face the reverse situation, having been disproportionately targeted by Brussels, Belgium.

The article presents the regulatory and market outlook for Australia for 2008. The government of New South Wales is planning to privatise its electricity-generating and retailing assets, but will keep associated transmission and distribution assets in public ownership. It notes the possibility that Australia and Chile will sign a free-trade agreement (FTA) in the second half of 2008. An emissions-trading scheme (ETS) for greenhouse gases will possibly be introduced by the federal government in 2010.

The article offers regulatory and market forecasts for Norway. Regulations under consideration by the government include the use of thorium deposits as fuel for nuclear reactors, emission allowance trading system with the European Union and pension reform. Proposals on a national transportation plan and provision of free online information are being considered.

The article argues that a cap-and-trade system is the better approach to reduce carbon dioxide and greenhouse gas emissions in the U.S. It cites the advantages of the cap-and-trade system, such as that it is an easy means of compensating for the unequal burdens imposed by climate policy and it avoids the political aversion to taxes. It explains how the proposed system could generate substantial revenue for the government. It stresses the importance of establishing international credibility and leading other nations to address climate change.

The article offers responses to objections raised against the use of the cap-and-trade system to reduce carbon dioxide and greenhouse gas emissions in the U.S. It cites the concern on whether allowance trading activity might result in excessive concentrations of other localized pollutants whose emissions are correlated with greenhouse gas emissions. It notes that the proposed system includes a large auction of emissions allowances from the very start. It stresses that the proposed system is linked to the actions of other key nations.

The article focuses on the economic policy of New Zealand as of October 2007. The government has introduced a plan designed to address the problems of climate change. It states that the core of the plan is a comprehensive new greenhouse gas emission permit system. Another emission-trading scheme will be introduced in the parliament by the end of 2007. Other topics discussed include firms launching overseas operations and rules governing the non-bank financial sector.

The article examines the impact of the European Union (EU) Emissions Trading Scheme (ETS) on climate change. According to the author, the ETS is the foundation of the EU's efforts to meet its obligation under the Kyoto Protocol and covers more than 10,000 energy intensive facilities across the 27 EU Member countries. The author believes that the EU-ETS experience is an example of the importance of reliable emissions data for all facilities under a cap-and-trade scheme.

The article discusses the results of Phase 1 and 2 of the European Union's (EU) Emissions Trading Scheme (ETS). According to the author, the first phase of the ETS aimed to place the EU on the way to compliance with the Kyoto protocol. The author notes that the projected baseline of ETS Phase 1 experienced uncertainties regarding data collection and coverage, in monitoring methods for historic data, and data verification.

The article offers a summary of considerations for U.S. cap-and-trade proposals. According to the author, the U.S. is not a party to the Kyoto Protocol and there are no legislative proposals that would impose strict or drastic emission reduction policies on the U.S. as the Kyoto Protocol would have. However, the author says that the experience of the European Union's (EU) Emissions Trading Scheme (ETS) could provide insights into cap-and-trade design issues in the U.S.