, Volume 41, Supplement 1, pp 12–22 | Cite as

What Have We Learnt from the European Union’s Emissions Trading System?

  • Markus Wråke
  • Dallas Burtraw
  • Åsa Löfgren
  • Lars Zetterberg


The EU Emissions Trading System (ETS) demonstrated the ability to design and launch a large-scale trading system in a short period of time. The path from initial reticence about emissions trading to implementation of the world’s largest program is an important history. Three issues play a large role in the evaluation of the program to date and its on-going development: allocation plans, cost uncertainty, and leakage of emissions to abroad. Decisions in Phase I and II (2005–2012) were responsive to questions of political feasibility and implementation, but some of these decisions including allocation in particular will be substantially revised in Phase III (2013–2020).


Emissions trading Carbon dioxide Climate change EU ETS 



This research has been supported by the Foundation for Strategic Environmental Research (Mistra) through the Climate Policy Research Program, Clipore.


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Copyright information

© Royal Swedish Academy of Sciences 2012

Authors and Affiliations

  • Markus Wråke
    • 1
  • Dallas Burtraw
    • 2
  • Åsa Löfgren
    • 3
  • Lars Zetterberg
    • 4
  1. 1.International Energy AgencyParisFrance
  2. 2.Resources for the FutureWashingtonUSA
  3. 3.University of GothenburgGöteborgSweden
  4. 4.IVL Swedish Environmental Research InstituteStockholmSweden

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