Five myths about an EU ETS carbon price floor - Policy Brief, October 2018

This policy brief builds on the workshop EU ETS Reform: Taking Stock and Examining Carbon Price Floor Options, held at the Centre for European Policy Studies (CEPS) in Brussels on July 3, 2018.


The brief outlines different perspectives on the past performance of the EU Emissions Trading System (ETS) in terms of its allowance price (Section 1), analyses how the recent reform responded to related challenges (Section 2), and considers the case for introducing a carbon price floor in the EU ETS (Section 3). The main part of the brief (Section 4) identifies five myths in the debate of an EU ETS price floor and critically confronts them. Section 5 concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming EU climate policy process. While the brief draws on insights from workshop discussions, its views are solely those of the authors.

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