Publication

This research paper discusses how the EU Emissions Trading System (ETS) as a regulatory construct to promote reductions in greenhouse gases can be adapted to address market imbalances. According to the author, backloading can be introduced as a measure to ensure good market functioning and to encourage investments to meet long-term targets for GHGs in 2050, however, it should not be a measure to target a price outcome. It is argued that, if implemented on its own, backloading will likely lead to the need for further one-off interventions.