Video: Carbon Trading

Video from this event. As the U.S. Congress considers proposed climate legislation and debates the merits and complications of a nationwide cap and trade program to reduce greenhouse gas emission, experience under the EU Emissions Trading Scheme (ETS) is useful to inform decisions regarding how to craft a well designed US cap & trade market. European policymakers and firms grappled with the questions of effective cap setting, price volatility, and cost uncertainty during the first 5 year implementation period of the EU ETS and several useful lessons can be drawn from that experience. The European experience also offers insights about the effects on innovation in carbon abatement technologies.