Contents
Executive Summary 1- Background 3
- The Environment 3
- The EU ETS Policy 3
- The Policy Problem 4
- Policy Options 6
- 1) Policy Revision 6
- 2) National Climate Laws 9
- 3) New policy based on auctioning as opposed to allocation 11
- Optimal Solution 12
- Aspects of the policy design 13
- Attitudes of interest groups and relevant political actors 15
- Issues related to the implementation of the policy 16
- References 19
Description
Considering that nearly 75% of the EUs (European Union) energy needs are derived from fossil fuels, there is a strong incentive to act against these emissions. The brief below looks at the present policy in place to deal with these emissions, the ETS policy and the problems associated with it. The ETS policy is one of the many policies under the ECCP program of the EU to deal with climate change. Based on a number of policy options, the most optimal policy program is chosen. It is suggested that a revision of the current ETS framework would be the most appropriate approach to the problems at hand.
