Externally funded project

LETSCaP - Linking Emissions Trading Systems: To­wards Socially and Ecologically Acceptable Cap-and-Trade Policies in Europe, the USA and Japan

Project Details
Project duration: 06/201009/2013

For the purpose of successful international climate policy the policy instrument of emissions trading becomes increasingly important. It is widely agreed that emissions trading systems can play a major role in efficient and effective cli­mate protection, because it allows for limiting the total amount of emissions while using the market to allocate reduction responsibilities to polluters in a cost-minimizing way. However, the most recent international climate conferences have shown that a glo­bal political agreement on a standardized worldwide emissions trading system cannot be expected in the near future. One promising alternative is the linkage of already exis­ting domestic emissions trading systems. So far, supranational, national, regional, and even local emissions trading systems have been implemented in many countries and regions. In order to foster the future merging of these systems aiming at a global carbon market, it would be helpful to link the major CO2 markets in the EU, the USA and Japan. As a result, an integrated market, which encompasses a significant part of the OECD-greenhouse gas emissions, would evolve. Furthermore, this market can serve as a role model for enlargements or additional links with other emissions trading schemes. The research project „Linking Emissions Trading Systems: Towards Socially and Ecologically Acceptable Cap-and-Trade Policies in Europe, the USA and Japan (LETSCaP)“ at the Competence Centre for Climate Change Mitigation and Adaptation (CliMA) of Kassel University examines how a linkage of domestic emis­sions trading systems can be designed in a way that satisfies the re­quire­ments of being operationally functioning (economically efficient, politically enforceable, legally feasible), ecologically ambitious and socially just. Therefore, legal and economic experts cooperate on this project in order to develop an integrated model of an ambitious linkage of domestic emissions trading systems in the EU, the USA, and Japan.

Last updated on 2017-11-07 at 13:43