This special issue of Climate Policy journal examines the impacts on the competitiveness and the commercial incentives available from the CO2 allowance allocations under the EU Emissions Trading Scheme, and discusses appropriate allocation methodologies, and whether - and if so at what stage - the ETS itself may need to be amended. The study is multidisciplinary, combining economic, legal and policy analysis, with specific studies of impacts on electricity, cement and other industrial sectors and allocation issues. It brings together the results of research conducted over the past two years...

Complying with the forthcoming tightening of CO2 emission allocations in the EU may mean big bills for the industries affected. Leading experts examine the impacts on competitiveness and the commercial incentives available from the CO2 allowance allocations under the methodologies, and whether - and if so at what stage - the ETS itself may need to be amended. The study is multidisciplinary, combining economic, legal and policy analysis with specific studies of impacts on electricity, cement and other industrial sectors and the allocation issues.

This volume examines issues surrounding the allocation of allowances in the EU Emissions Trading Scheme (ETS) and the implications for Phase II of this hugely important programme.