Climate Economics Focus

A primer on the EU’s emissions trading scheme

This first report of a three-part mini-series explains what an emissions trading scheme (ETS) is and how the ETS has evolved since its introduction in 2005. It then explores how reforms to the ETS...

22nd February 2024 · 13 mins read

Climate Economics Monthly

Polluter-pays principle to become more mainstream

Amid a flurry of news and action in carbon markets in recent months, this note examines the details and implications of developments around the world.

31st January 2024 · 5 mins read

Climate Economics Update

Weak demand to keep lid on EU carbon price in 2024

The downward trend in the EU carbon price since early 2023 has been driven by lower demand for pollution permits on the back of industrial weakness and growth in cleaner energy sources. With energy...

17th January 2024 · 4 mins read

Climate Economics Update

CBAM wouldn’t affect UK industries equally

Becoming liable for the EU’s carbon border adjustment mechanism (CBAM) would nullify any cost-reduction benefit from a lower carbon price for UK companies that trade closely with the EU. That said...

6th October 2023 · 3 mins read

Energy Focus

Lessons from the EU’s carbon permit market

This year, the EU announced reforms to its Emissions Trading Scheme (ETS) which, if introduced, would boost the price of each carbon permit and ultimately help the bloc to rapidly reduce its...

10th November 2021 · 14 mins read