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Design options for sectoral market mechanisms and their implications for the EU ETS

#projects #climate policy#energy and power#industry

The European Commission initiated an in-depth study to identify, assess and elaborate design options for sectoral carbon market mechanisms. The study, informed DG Climate Action and the EU’s submissions to the UNFCCC on the design of a new market mechanism, as defined by the Conference of the Parties in Durban. It also supported the Commission in the climate negotiations in Doha.

The study outlines three alternative design proposals for the mechanism and assesses the potential for implementation in five case studies, involving sectors in South Africa, Chile, Brazil, Vietnam and Indonesia. It includes recommendations for sectoral crediting and trading. The design options are a comprehensive set of several design parameters qualitatively assessed through analysis and consultations with key experts and stakeholders. One of the design options will be selected by the EU for further assessment through five case studies, each combining a sector in a specific country.

As an employee of Climate Focus,  I supported the consortium with Ecorys, ECN and the Wuppertal Institute with identifying design options and elaborating the practical case studies.

Download the report from the EU website.

Client: DG Clima

Partners: Climate Focus, Ecorys (lead partner), Trinomics, ECN and the Wuppertal Institute

2011-12

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Jelmer Hoogzaad
jelmer@shiftingparadigms.nl
+31(0)6 41 47 01 91

topics

  • Circular economy
  • Cities and urban mining
  • Climate finance
  • Climate policy
  • Energy and resource efficiency
  • Low carbon development
  • Renewable energy

sectors

  • Agriculture and forestry
  • Construction
  • Energy and power
  • Households and SMEs
  • Industry
  • Transport
  • Waste
  • Water

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