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THE EU EMISSIONS TRADING SYSTEM: FIVE THINGS TO WATCH AS THE PROGRAM DEVELOPS
Wednesday, May 19, 2004 12:30 pm - 1:30 pm
RFF Conference Center : 1616 P Street Washington DC 20036
Seminar related to Climate, Policy and Analysis
The European Union is on the verge of establishing an emissions trading program ten times the size of the SO2 trading program in the United States.  The design of the program takes advantage of many lessons from existing experience with trading programs and innovates in important ways.  However, it also raises a number of questions. Can EU member states develop the capacity to run the program on a very tight timeframe?  Will there be consistency on key programmatic features among different member states (including new ”Accession States” like Poland and the Czech Republic)?  Will there be enough liquidity to dampen allowance price volatility in the second phase of the program?  How does the Kyoto protocol affect the design of the program?  Will the EU trading system have an impact on future climate regimes?  Kruger will describe the new EU Trading System, discuss key issues to watch as the program develops, and offer conclusions about opportunities and potential pitfalls that might arise.  
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