Mistra Carbon Exit – ENGLISH

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Policy brief: Five myths about an EU ETS carbon price floor

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The brief outlines different perspectives on the past performance of the EU Emissions Trading System (ETS) in terms of its allowance price (Section 1), analyses how the recent reform responded to related challenges (Section 2), and considers the case for introducing a carbon price floor in the EU ETS (Section 3). The main part of the brief (Section 4) identifies five myths in the debate of an EU ETS price floor and critically confronts them. Section 5 concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming EU climate policy process.

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Authors:
Christian Flachsland: Mercator Research Institute on Global Commons and Climate Change (MCC), Hertie School of Governance
Michael Pahle: Potsdam Institute for Climate Impact Research (PIK)
Dallas Burtraw: Resources for the Future
Ottmar Edenhofer: Mercator Research Institute on Global Commons and Climate Change (MCC), Potsdam Institute for Climate Impact Research (PIK)
Milan Elkerbout: Centre for European Policy Studies – CEPS
Carolyn Fischer: Vrije Universiteit, School of Business and Economics, Department of Spatial Economics
Oliver Tietjen: Potsdam Institute for Climate Impact Research (PIK), Technische Universität Berlin
Lars Zetterberg: IVL Swedish Environmental Research Institute

Funding: This publication is funded by CEPS, the AHEAD project, The Mistra Carbon Exit program and by the Swedish Energy Agency.

ISBN 978-91-88787-87-3

Edition Only available as PDF for individual printing