Effect of the European Union Emission Trading Scheme (EU ETS) on companies: Interviews with European companies

We visited Belgian and Dutch companies that are covered by EU ETS in November 2007, in order to conduct interviews regarding the impact of the scheme and the resultant performance of these companies. The problems of the EU ETS that emerge from this interview are as follows: (1) the redundancy of emission allowance dampens the incentive to reduce the emission of CO2, (2) the allocation scheme fails to consider inter-industrial and/or inter-district fairness, and (3) since the duration of the National Allocation Plan is too short and highly uncertain, it is difficult to implement a long-term reduction investment plan. As European company officers pointed out, the current EU ETS has several problems. However, the recent political debate on the EU ETS seems to have entered a new dimension toward the second period of the National Allocation Plan. For instance, the cap of CO2 emission in the second period has tightened in comparison with the case in the first period, when the allowance excessive. Furthermore, in January 2008, the European Union set the goal of reducing emission by 20% from the 1990 level, by the year 2020. Moreover, the EU intends to introduce the complete auction of emission allowance after the year 2013 excluding the sector that is expected to experience serious leakage problems. The current EU ETS can be regarded as a CO2 reduction scheme in transition. The policy makers of the Japanese government should behold and draw upon the experiences of the European Union in order to implement appropriate policy measures against global warming in Japan.

The Effects of the EU ETS on Companies: Research by Conducting Interviews in European Companies

We study the effects of the European Union Emission Trading Scheme (EU ETS)?which was introduced in January 2005?on companies by conducting interviews in some German and UK firms. In this paper, we demonstrate that although the introduction of the EU ETS has increased awareness of the importance of efforts to reduce global warming and emission costs, it has had little influence on the companies CO2 abatement efforts during the first period.

The Impact of the European Union Emissions Trading Scheme on the Polish Economy:Interviews with Four Companies in Poland

This paper reports the results of interviews with four Polish companies. The results of the interviews shows that Polish companies tend to evaluate the effects of the introduction of EU ETS in 2005 positively: it provided an alternative view that they need considering environment in their business, and that they had much useful information for the improvement of energy losses by measuring it to verify the amount of emissions. However, there are also several negative claims to the EU ETS: auction adopted in the EU ETS from 2013 not only requires purchasing allowances, but also increases production cost due to the rise in the electricity price. Moreover, some of them are concerned that the competitiveness of Poland might be weakened, since it deeply depends on coal.

The Effects of the EU ETS on Companies: Research by Conducting Interviews in European Companies

We study the effects of the European Union Emission Trading Scheme (EU ETS)?which was introduced in January 2005?on companies by conducting interviews in some German and UK firms. In this paper, we demonstrate that although the introduction of the EU ETS has increased awareness of the importance of efforts to reduce global warming and emission costs, it has had little influence on the companies CO2 abatement efforts during the first period

The Impact of the European Union Emissions Trading Scheme on the Polish Economy: Interviews with Four Companies in Poland

This paper reports the results of interviews with four Polish companies. The results of the interviews shows that Polish companies tend to evaluate the effects of the introduction of EU ETS in 2005 positively: it provided an alternative view that they need considering environment in their business, and that they had much useful information for the improvement of energy losses by measuring it to verify the amount of emissions. However, there are also several negative claims to the EU ETS: auction adopted in the EU ETS from 2013 not only requires purchasing allowances, but also increases production cost due to the rise in the electricity price. Moreover, some of them are concerned that the competitiveness of Poland might be weakened, since it deeply depends on coal

Effect of the European Union Emission Trading Scheme (EU ETS) on companies: Interviews with European companies

We visited Belgian and Dutch companies that are covered by EU ETS in November 2007, in order to conduct interviews regarding the impact of the scheme and the resultant performance of these companies. The problems of the EU ETS that emerge from this interview are as follows: (1) the redundancy of emission allowance dampens the incentive to reduce the emission of CO2, (2) the allocation scheme fails to consider inter-industrial and/or inter-district fairness, and (3) since the duration of the National Allocation Plan is too short and highly uncertain, it is difficult to implement a long-term reduction investment plan. As European company officers pointed out, the current EU ETS has several problems. However, the recent political debate on the EU ETS seems to have entered a new dimension toward the second period of the National Allocation Plan. For instance, the cap of CO2 emission in the second period has tightened in comparison with the case in the first period, when the allowance excessive. Furthermore, in January 2008, the European Union set the goal of reducing emission by 20% from the 1990 level, by the year 2020. Moreover, the EU intends to introduce the complete auction of emission allowance after the year 2013 excluding the sector that is expected to experience serious leakage problems. The current EU ETS can be regarded as a CO2 reduction scheme in transition. The policy makers of the Japanese government should behold and draw upon the experiences of the European Union in order to implement appropriate policy measures against global warming in Japan