GGP: EU ETS: fasten your seatbelts
The statements, opinions and data contained in the content published in Global Gas Perspectives are solely those of the individual authors and contributors and not of the publisher and the editor(s) of Natural Gas World.
This is an excerpt from a paper originally published by the Oxford Institute of Energy Studies in May 2017.
This third OIES Brexit publication looks at the European-wide EU emissions trading system (EU ETS) issues. We argue that the many burdensome patches to be implemented, together with those that are already agreed or discussed, are as nothing compared to the Brexit unknowns if there is no united political will.
The first set of Brexit negotiating directives1 was adopted by the EU Council on 22 May 2017 and they only mentioned Euratom on the energy side. Two draft EU position papers (‘Essential principles on citizens’ rights’ and ‘Essential principles on financial settlement’ 2 ) were published by the European Commission on 29 May 2017. Even if energy is not yet on the agenda, 3 this third OIES Brexit publication is looking at the EU emissions trading system (EU ETS) issues. We argue in this short note that the many burdensome patches to be implemented, together with those that are already agreed or discussed, are as nothing compared to the Brexit unknowns if there is no united political will.
The EU ETS is a cornerstone of the EU’s policy to combat climate change and is its key tool for reducing greenhouse gas emissions cost effectively. It is the world’s first major carbon market and remains the biggest one. And it is a true European-wide trading system – as opposed to electricity and gas that are traded on each country hub, and oil that is a worldwide market using, mostly, the Brent index.
Thierry Bros
The statements, opinions and data contained in the content published in Global Gas Perspectives are solely those of the individual authors and contributors and not of the publisher and the editor(s) of Natural Gas World.