UK’s Energy and Climate Change Committee published a report recommending an international connection of CO2 quota trading schemes throughout the world.
According to Tim Yeo, director of UK’s Energy and Climate Change Committee, “putting a price on carbon is an essential prerequisite in order to reverse the trend of CO2 emissions. He added that just a tax would not be enough to reach the mitigation objective. A cap and trade system is a far more incentive and useful tool”.
To not exceed the 2C threshold in 2100, all cap and trades systems have to be linked worldwide. The COP21 in Paris could be a milestone towards a global harmonization of carbon markets. Two of them already are connected in North America : between 9 states in the North-East region of the US and California and Quebec.
A global carbon market is for many, the most efficient way to go because it enables people to have s long term vision for their carbon’s investments. Because of its bottom-up approach, the cap and trade system is a good way to give countries some freedom for their contribution, preventing the top-down approach very often criticized.
The European Trade Scheme currently covers 1000 organizations in 31 countries making it the most important worldwide. Because of its position, the EUTS has a major role to play in the global carbon’s market harmonization. But before that, reforms and adjustments will have to be implemented in order to fix EUTS’s current issues. Unfortunately this should not happen before 2018.