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The European Union's Emissions Trading Scheme (EU ETS) is the world's largest market for carbon and the most significant multinational initiative ever taken to mobilize markets to protect the environment. It will be an important influence on the development and implementation of trading schemes in the US, Japan, and elsewhere. However, as is true of any pioneering public policy experiment, this scheme has generated much controversy. Pricing Carbon provides the first detailed description and analysis of the EU ETS, focusing on the first 'trial' period of the scheme (2005-7). Written by an international team of experts, it allows readers to get behind the headlines and come to a better understanding of what was done and what happened based on a dispassionate, empirically based review of the evidence. This book should be read by anyone who wants to know what happens when emissions are capped, traded, and priced.
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'With the global debate now firmly focused on the creation of further carbon markets and the need for international linking, we must never underestimate the influence of the EU's pioneering Emissions Trading Scheme. This created the world's largest carbon market and is the most significant public policy initiative ever to use the market place to protect the environment. Pricing Carbon is a fascinating, detailed but reader-friendly description of the EU ETS by an international team of experts and provides an invaluable evidence-based review of the first phase (2005-2007) - 'warts and all'. Even the impressive bibliography itself was worth publishing!' Avril Doyle, former MEP and Rapporteur of the 2008 ETS Directive