Climate Change is real, and the impacts on ecology, economy and human lifestyle are expected to be tremendous.
In order to effectively but also cost efficiently combat climate change, market based instruments are being used in environmental policy. Certificate schemes have been and are being created for trading of greenhouse gas reductions (Grey Certificates), renewable energy (Green Certificates) and energy efficiency (White Certificates).
So far, Europe is the frontrunner in implementing especially Greenhouse Gas emission trading schemes. However, as climate change is a global problem, similar markets should be established all over the world and ideally be linked in order to achieve economic optimal solutions.
This thesis describes characteristics of the different instruments and trading schemes (Grey, Green and White Certificates) and identifies major design parameters of the systems with the focus on compatibility and potential for establishing links between schemes of the same type or among the certificate types. Implications of establishing links, which can be planned and wanted but also conflicting with other goals, are discussed. As greenhouse gas emissions trading schemes are the most developed and experienced trading schemes in climate change policy, the focus of this work lies on the analysis of the different Greenhouse Gas emission trading schemes (ETS). For the compatibility analysis of ETS, the EU ETS is chosen as reference system.
An outlook for near-term linking options and a summary conclude the analysis based on the findings of the work.
As more and more environmental policies and instruments emerge around the world due to rising awareness for the problem of climate change, this thesis gives an overview but can not cover all different certificate systems in place and planned.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Problem description
- Goal of the master thesis
- The reasoning for climate protection
- Global Warming and anthropogenic CO2
- Sources of Greenhouse Gas Emissions
- The UNFCCC Agreement on Climate Protection
- European energy policy and the 2020 / 2050 targets
- Overview of ways for reducing greenhouse gas emissions
- Greenhouse gas abatement
- Increase of renewable energy
- Increase of Energy Efficiency
- Implementation of Carbon Capture and Storage
- Certificate trading schemes for climate protection
- Background of Market based instruments in environmental policy
- The evolution of trading schemes in environment policy
- Deployment of Environmental Trading Schemes
- Design characteristics of Emission Trading Schemes
- Cap setting
- Allocation of allowances
- Coverage
- Offsets
- Cost control measures
- Greenhouse Gas Emissions Trading (Grey Certificates)
- Overview and Functioning of GHG Emission Trading Schemes
- The global market for Greenhouse Gas emissions trading
- GHG Emission Trading Schemes in place or proposed
- European Emission Trading Scheme
- Norwegian ETS
- Chicago Climate Exchange
- New South Wales Greenhouse Gas Abatement Scheme (Australia)
- Japanese Voluntary Emissions Trading Scheme
- Alberta's Climate Change and Emissions Management Act (Canada)
- Swiss Emission Trading Scheme
- Australian ETS (announced)
- New Zealand ETS (announced)
- Canadian ETS (announced)
- Proposed initiatives in the United States of America
- Linking GHG Emission Trading Schemes
- Types of Links
- Direct Linking
- Indirect Linking
- Impacts of Linking
- Examples of links between GHG ETS
- Prospects and near-term opportunities for linking GHG ETS
- Types of Links
- Renewable energy trading (Green Certificates)
- Options for promoting renewable energy production
- Overview and Functioning of Tradable Green Certificates
- The Guarantees of Origin system in the EU
- Implementation of TGC Systems
- Voluntary TGC schemes - the example of RECS
- The proposed EU-wide Guarantees of Origin Trading Scheme
- Possibilities of Linking Green Certificate Schemes
- Energy efficiency trading (White Certificates)
- Overview and Function
- White Certificate Systems in place
- Tradable White Certificates in Italy
- Tradable White Certificates in UK
- Tradable White Certificates in France
- Opportunities and barriers for White Certificates
- Outlook for White Certificate Systems within the EU
- Possibilities for Linking TWC Systems
- Interaction of Grey, Green und White Certificate Trading Schemes
- Linking Emissions Trading with Green Certificates
- Linking Emissions Trading with White Certificates
- Linking White and Green Certificates
- Summary
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This master thesis aims to analyze the design and potential for linking different certificate trading schemes for greenhouse gas emission reductions, renewable energy, and energy efficiency. It investigates the compatibility of existing systems, explores the potential benefits and drawbacks of linking, and provides an overview of the current state of the global market for these certificates.
- Analysis of design characteristics and compatibility of different certificate trading schemes
- Evaluation of the potential benefits and drawbacks of linking various schemes
- Assessment of the current state of the global market for certificate trading in different environmental areas
- Exploration of near-term opportunities for linking existing systems
- Focus on the European Emission Trading Scheme (EU ETS) as a reference system for the compatibility analysis of Greenhouse Gas Emission Trading Schemes
Zusammenfassung der Kapitel (Chapter Summaries)
The thesis begins with an introduction highlighting the urgency of climate change mitigation and outlining the objectives of the work. Chapter 2 discusses the rationale behind climate protection, exploring the causes of global warming and reviewing various approaches to greenhouse gas reduction. Chapter 3 provides a general overview of market-based instruments in environmental policy and their evolution, emphasizing the design characteristics of emission trading schemes.
Chapter 4 focuses on Greenhouse Gas Emissions Trading (Grey Certificates), presenting a comprehensive overview of the global market for this type of certificate. The chapter analyzes various existing and proposed GHG Emission Trading Schemes worldwide, including the EU ETS, the Norwegian ETS, the Chicago Climate Exchange, and schemes in Australia, Japan, Canada, Switzerland, and the United States. Chapter 5 investigates the different types and potential impacts of linking GHG Emission Trading Schemes.
Chapter 6 explores renewable energy trading (Green Certificates), examining options for promoting renewable energy production, providing an overview of the functioning of Green Certificate schemes, and discussing the implementation of the Guarantees of Origin system in the EU. Chapter 7 delves into energy efficiency trading (White Certificates), outlining the principles of this type of certificate system and highlighting the examples of Italy, the UK, and France. The chapter also examines opportunities and barriers for the implementation of White Certificate schemes within the EU.
Schlüsselwörter (Keywords)
The main keywords of this work include: climate change, greenhouse gas emissions, environmental policy, market-based instruments, certificate trading schemes, emission trading schemes, renewable energy, energy efficiency, linking, compatibility, EU ETS, Grey Certificates, Green Certificates, White Certificates.
- Quote paper
- DI Mag. Gudrun Senk (Author), 2008, Linking certificate trading schemes for greenhouse gas emissions, renewable energy and energy efficiency, Munich, GRIN Verlag, https://www.grin.com/document/142754
