What Can The Music Industry Teach You About Finance

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The benefit of such a large market measurement goes far beyond all the opposite well-recognized theoretical benefits of an ETS system, such because the induced technological innovation, the concrete utility of the "polluter pays" precept as nicely as the increased flexibility as compared to traditional command and control instruments. Moreover, the EU ETS has also a symbolic value, which matches past purely economic concerns and demonstrates the will of the EU to stand as a leader in the international environmental policy context. The unexpected capability of the EU to ascertain such a broad system in a relatively brief time is by far an important feature that distinguishes the EU ETS from earlier experiences in this subject. These early experiences have been so successful that other nations determined to implement their own ETSs to handle various environmental issues. Section 7 summarizes the very best and worst features of the ETSs examined within the paper, drawing consideration on the main positive and negative facets that emerge from in the applying experiences mentioned above. However, the back-loading initiative was meant to signify simply a temporary answer to be used through the EU ETS 3rd section (up to 2020), and the European Commission clarified from the very beginning that a more structural EU ETS reform was needed, so as to reduce the EUAs surplus and restrict the associated unfavourable results on the functioning of the European carbon market.11 For that reason, in 2014 the European Commission proposed the institution of a market stability reserve.12 The "Proposal available on the market stability reserve" was introduced alongside the EU Communication on "A policy framework for climate and energy in the period from 2020 to 2030." The market stability reserve has a twofold purpose

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Later, Directive 2008/101/EC (2008) extended the scope of utility of the EU ETS to the aviation sector, so that emissions produced by all flights from, to, and inside the European Economic Area (i.e., the 28 EU Member States (MS), plus Iceland, Liechtenstein and Norway) should have being covered by the EU ETS, as of 2012.2 Subsequently, Directive 2009/29/EC (2009) revised the whole EU ETS scheme, further extending its scope of application to additional sectors (petrochemicals, ammonia, aluminum) and gases (N2O and PFCs). Subsequently, the EU, following the US expertise in the applying of the ETS to air emissions, launched its own ETS by Directive 2003/87/EC (2003). The EU ETS was initially utilized to CO2 emissions and a few sectors only (energy actions - such as oil refineries - production and processing of ferrous metals, mineral business, pulp, and paper trade). Alternatively, some shortcomings, which are inclined to weaken its effectiveness, have emerged in the implementation of the EU ETS. However, some criticalities that emerged in the functioning of the EU ETS, together with the rapid evolution of ETSs around the globe, cast some doubts on the capacity of the EU to keep up its management and stay ahead of the chasing group within the years to come back

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