15 years of carbon market : six lessons for strengthening the system

Christian de Perthuis Christian de Perthuis, Professor at ParisDauphine-PSL University analyses the 15 years of the carbon market for Confrontations Europe and ID4D (French Development Agency’s journal). [vc_btn title= »Download PDF » color= »primary » link= »url:http%3A%2F%2Fconfrontations.org%2Fwp-content%2Fuploads%2F2017%2F07%2Fde-Perthuis-Eng.pdf||target:%20_blank| »]The six lessons                                               Setting the cap: tighter constraint needed! For 15 years, the emissions cap has been based on non-binding climate targets. The move to a 55% reduction target in 2030 compared to 1990 provides a historic opportunity to strengthen the emissions trading system. Governance: where’s the pilot in the event of turbulence? To ensure that the market can be managed in the face of unforeseen events and to ensure the transparency of the CO2 price trajectory, an independent authority would have the power to allocate and withdraw allowances in the same way as a central bank. The scope of the scheme: time to change gear! From 2023 onwards, the emissions trading scheme should cover all CO2 emissions linked