Working Paper
Emissions Trading, CDM, JI, and More - The Climate Strategy of the EU
The objective of this paper is to assess the likely allocation effects of the current cli-mate protection strategy as it is laid out in the National Allocation Plans (NAPs) for the European Emissions Trading Scheme (ETS). The multi-regional, multi-sectoral CGE-model DART is used to simulate the effects of the current policies in the year 2012 when the Kyoto targets need to be met. Different scenarios are simulated in or-der to highlight the effects of the grandfathering of permits to energy-intensive instal-lations, the use of the project-based mechanisms (CDM and JI), and the restriction imposed by the supplementarity criterion.
Key Words
- CDM and JI
- Computable General Equilibrium Model
- DART
- EU
- EU emissions trading scheme
- Kyoto targets
- National Allocation Plans