Climate change is a global problem. According to the majority opinion of renowned experts, humans are to blame for this development. In recent years, industrialization has caused the levels of greenhouse gases in the earth's atmosphere to rise rapidly. The consequences are clearly noticeable in our daily lives, such as rising average temperatures or more frequent extreme weather events.
Recent events, such as the diesel scandal, have fueled discussions about the CO2 tax as a more effective measure to deal with climate change. In addition, the diesel scandal showed how the environment is being negligently treated in favor of profit. This has led me to critically analyze emissions trading as one of the current environmental policy measures to reduce greenhouse gases. This is because it is seen in the EU as a particularly powerful tool for achieving climate targets. However, it often also serves as a basis for argumentation against further measures for the environment by companies. The question that occurs to me is what opportunities and risks could arise for Germany from emissions trading.
In order to be able to answer this question, it is first necessary to give an initial overview of the topic. It will be explained which functions emissions trading should fulfill and what differences there are between global emissions trading and that in the EU. I then present the scientific findings on emissions and emissions trading to date. Based on the research and the knowledge gained from it, I am able to answer the key question.
Finally, my conclusion follows.
Inhaltsverzeichnis (Table of Contents)
- Emissions Trading in the European Union
- Introduction
- Emissions Trading
- Emissions Trading in the European Union
- State of Research
- Opportunities and Risks of EU Emissions Trading
- Criticism of Emissions Trading
- Climate Becomes a Commodity
- Overallocation of Certificates
- Market Stability Reserve
- Criticism of Ineffective Target-Setting
- Windfall Profits
- CO2 Tax - A Reasonable Measure?
- Reform of EU Emissions Trading for the 4th Trading Period
- The Strengthening of the EU ETS
- Maintaining the Competitiveness of Industry
- Promotion of Innovation and Solidarity Measures
- CO₂ Tax as an alternative Climate Protection Mechanism
- Conclusion: What Opportunities and Risks arise for Germany as a Result of EU Emissions Trading?
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this work is to critically analyze emissions trading as a current environmental policy measure to reduce greenhouse gas emissions, specifically examining the opportunities and risks it poses for Germany. The work explores how emissions trading functions, delves into the scientific findings related to emissions and emissions trading, and ultimately seeks to provide a comprehensive understanding of the topic.
- The effectiveness of emissions trading in reducing greenhouse gas emissions
- The potential economic and environmental impacts of emissions trading
- The role of the EU Emissions Trading System (EU ETS) in achieving climate targets
- The challenges and opportunities associated with reforming the EU ETS
- The potential of alternative climate protection mechanisms, such as a CO₂ tax.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides an overview of the global problem of climate change and its human-induced origins, emphasizing the role of industrialization in increasing greenhouse gas emissions. It introduces emissions trading as a current environmental policy measure, highlighting its potential for achieving climate targets while acknowledging its use as a basis for argumentation against further environmental measures by companies.
- Emissions Trading: This chapter delves into the historical development of emissions trading, starting with the Framework Convention on Climate Change (UNFCCC) in 1992 and its subsequent evolution to the Kyoto Protocol in 1997. The chapter details the Kyoto mechanisms, including emissions trading, Joint Implementation (JI), and Clean Development Mechanism (CDM), explaining their roles in fostering international climate protection.
- Emissions Trading in the European Union: This chapter focuses on the implementation of emissions trading in the European Union, outlining the EU's commitment to reducing emissions and the introduction of the EU ETS in 2005. The chapter explains the legal framework of emissions trading in the EU, detailing which industries and companies are subject to the scheme and how it operates.
- State of Research: This chapter presents a comprehensive overview of existing scientific findings on emissions and emissions trading. It analyzes the effectiveness of emissions trading in reducing greenhouse gas emissions and explores the challenges and opportunities associated with its implementation.
- Opportunities and Risks of EU Emissions Trading: This chapter examines the potential benefits and drawbacks of emissions trading for Germany. It analyzes the economic and environmental impacts of the EU ETS, highlighting both the potential for reducing emissions and the risks of market volatility and unintended consequences.
- Criticism of Emissions Trading: This chapter addresses the criticisms leveled against emissions trading, exploring various arguments against its effectiveness and fairness. It examines concerns about the overallocation of certificates, market instability, and the potential for windfall profits. The chapter also discusses the potential for alternative climate protection mechanisms.
Schlüsselwörter (Keywords)
This work focuses on emissions trading, specifically in the European Union, and its effectiveness in reducing greenhouse gas emissions. The key themes include climate change, environmental policy, economic instruments, cap and trade, EU Emissions Trading System (EU ETS), market stability reserve, CO2 tax, and alternative climate protection mechanisms. This work also examines the potential opportunities and risks for Germany as a result of the EU ETS.
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- Tim Meyer (Autor), 2020, Emissions Trading in the European Union, Múnich, GRIN Verlag, https://www.grin.com/document/903243
