A carbon central bank (CCB) that translates carbon removals into allowances would transform the European Union Emissions Trading System (EU ETS) from a fiat allowance to a gold standard system, ensuring unchanged net emissions on the path to net-zero greenhouse gas (GHG) targets. Meeting such...

The European Union cap-and-trade emissions trading system (EU ETS) faces two challenges in the context of the European Green Deal. First, to meet the Paris temperature target, emissions in the energy and industrial sectors must fall to net-zero and then even become net-negative. Second, there is...

A carbon central bank (CCB) that translates carbon removals into allowances would transform the European Union Emissions Trading System (EU ETS) from a fiat allowance to a gold standard system, ensuring unchanged net emissions on the path to net-zero greenhouse gas (GHG) targets. • Meeting...

It has been assumed that arbitrage profits are not possible in efficient markets, because future prices are not predictable. Here, we show that predictability alone is not a sufficient measure of market efficiency because of the influence an order has on its dynamics. We instead propose to...