Carbon credits are one tool large emitters use to offset emissions. But can retail investors get in on the action – and speed the transition to net zero?
It’s been a rocky couple of weeks for carbon allowances markets, particularly in Europe as the conflict in Ukraine has driven volatility, price declines, and sell-offs across industries and sectors, including in the futures market for carbon.
The carbon emission trading scheme (ETS) is an essential policy tool for accomplishing Chinese carbon targets. Based on the Chinese provincial panel data from 2003 to 2019, an empirical study is conducted to measure the effects of carbon emission reduction and spatial spillover effect by adopting the difference-in-differences (DID) model and spatial difference-in-differences (SDID) model. The research findings show that: (1) The ETS effectively reduced the total carbon emissions as well as emissions from coal consumption; (2) such effects come mainly from the reduction of coal consumption and the optimization of energy structure, rather than from technological innovation and optimization of industrial structure in the pilot regions; and (3) the ETS pilot regions have a positive spatial spillover effect on non-pilot regions, indicating the acceleration effect for carbon emission reduction. Geographic proximity makes the spillover effect decrease due to carbon leakage.
Last July, the European Commission launched its mammoth package of legislative proposals aiming to implement the EU Green Deal and deliver the promises made under the European Climate Law. Bellona Europa has submitted responses to the CBAM proposal, the Energy Taxation Directive Proposal and the ReFuelEU Avitation proposal.