Energy Community Treaty and the EU Emissions Trading System: Evidence of an Unrecognized Policy Conflict
Article from: OGEL 2 (2014), in Energy Community
The European Greenhouse Gas (GHG) Emission Trading System (EU ETS) is oversupplied and allowance prices are low (4.5 Euros). Given the EU's ambitious GHG reduction goals (minus 80 to 95% by 2050 below 1990 levels) and the current EU ETS structural reform discussions, it is to be expected that allowance prices will increase. This brings the EU ETS in conflict with energy market integration and the Energy Community Treaty that serve the proliferation of the energy acquis but does not include rules on emissions trading. This paper analyses this policy conflict and provides evidence ...