The Cancun Agreements in December 2010 have set the basis for the continuing availability of market mechanisms to assist developed countries in meeting their mitigation commitments a post-2010 climate regime. They provide that the introduction of the new market-based mechanisms (NMMs) will be...

The EU emissions trading system (ETS) is expected to make a major contribution towards achieving the EU’s target to reduce greenhouse emissions by at least 40% by 2030 compared with 1990 levels. Moreover, there is a strong need to address an accumulated over-supply of emissions allowances and...

This working paper discusses similarities and differences between the cooperation mechanisms of the EU renewable energy directive (RES directive) and the flexible mechanisms of the Kyoto Protocol. The cooperation mechanisms allow the (virtual) trade of renewable energy and were introduced with...

This report aims to identify the savings that EU countries with expensive renewable energy options would incur if a joint wind project was developed in Albania. It further investigates the potential to share the renewable electricity from such a project between Albania and the EU. In its draft...

The paper investigates the role of the renewable cooperation mechanisms of the Renewable Energy Directive for the West Balkan countries and assesses possible win-win constellations for buyer and seller countries. It concludes that the role of cooperation mechanisms in the West Balkans is not a...

The barriers to linking greenhouse gas cap-and-trade schemes are assessed, based on an analysis of existing and emerging trading schemes, including those in the USA, Japan, Australia, New Zealand and the EU. The feasibility of different forms of linking and the time frames for their...

Having agreed upon a binding emissions reduction path by 2020, the EU plays a leading role in international climate policy. The EU currently pursues a dual approach through an Emissions Trading Scheme (ETS) at the EU level and also via national targets in sectors not covered by the ETS. The...

We quantified the volume of free allowances that different national allocation plans proposed to allocate to existing and new installations, with specific reference to the power sector. Most countries continue to allocate based on historic emissions, contrary to hopes for improved allocation...