FinSoul has learned that new research has indicated that the EU’s carbon trading scheme has been a success after experts from Frances state bank, Cassie des Depots, the Paris-Dauphine University, Dublin’s University College and the U.S.’s Center for Energy and Environmental Policy Research recently worked together to evaluate the schemes trial period which was thought by many to have been a failure.
The initial trading phase of the carbon emissions trading scheme ran from 2005 to 2007. Early on in the program carbon permits were over-allocated and the price of carbon dropped away in the 27 nation block.
FinSoul understands that the research showed that although many problems occurred in the first phase, these were overcome and did not affect the overall goal of reducing carbon emissions.
"The sometimes voiced argument that the EU ETS has been a failure cannot be sustained on the basis of the evidence," FinSoul believes the researchers were quoted as saying, adding that emission cuts were achieved in a cost-effective manner.
They highlighted that the cost of carbon is now a major factor in the European power markets investment decisions as well as those of many other businesses.
FinSoul was informed that the researcher team felt that one of the first phase’s main achievements was the creation and establishment of a regulatory mechanism which will enable the delivery of more ambitious emissions cuts and could be the foundation of a possible global carbon market.
"The EU ETS is a path-breaking policy experiment whose implications will extend far beyond the EU," the reports authors said.
