California's set-aside modelETS
This briefing explores how set aside legislation is being introduced from the outset into California’s cap-and-trade legislation. The Californian scheme contains two strategic reserves of permits: the larger one is an Allowance Price Containment Reserve, which helps prevent both high and low prices in the market. The second is a Voluntary Renewable Energy Reserve which protects the decarbonising efforts of ethical energy consumers. We present these as legislative options that the EU policymakers may wish to follow here in Europe.