Climate Policy after Copenhagen - The Role of Carbon Pricing

At the UN Climate Negotiations in Copenhagen, 117 heads of state concluded that low-carbon development is necessary in order to combat climate change. However, they also understood that transition to a low-carbon economy requires the implementation of a portfolio of policies and programs – a challenging endeavour for any nation. This book addresses the need for information about factors impacting climate policy implementation, using as a case study one effort that is at the heart of attempts to create a low-carbon future: the European Emission Trading Scheme. It explores problems surrounding the implementation of the ETS, including the role of vested interests, the impact of design details and opportunities to attract long-term investments. It also shows how international climate cooperation can be designed to support the domestic implementation of low-carbon policies. This timely analysis of carbon pricing contains important lessons for all those concerned with the development of post-Copenhagen climate policy. • Explains the economics of carbon pricing without using equations so that the book is more accessible to a broader set of actors • Uses the example of the EU Emissions Trading Scheme to explore the politics, design and implementation of climate policy instruments • Explores financial mechanisms to encourage/facilitate south-north cooperation and the links between domestic policy implementation and international cooperation

List of figures; List of tables; List of text boxes; 1. Introduction; 2. The role of a climate policy mix; 3. Implementing a carbon price, the example of cap and trade; 4. Shifting investment to low-carbon choices; 5. Co-operation among developed countries – a role for carbon markets?; 6. A world of different carbon prices; 7. International support for low-carbon growth in developing countries; 8. Conclusion; References; Index.