This report critically evaluates the perfomance and prospects of the EU ETS as it currently stands. It explores how Phase 2 caps have been weakend by recession, and how slack from Phase 2 – in the form of unused offset credits – is likely to defer abatement within the EU for much of Phase 3. In addition we explore how large, undeserved surpluses have accrued to specific sectors and companies within the EU ETS.
Our companies analysis can also be viewed as the Carbon Fatcats 2009 pullout displayed below.
The report includes a note of correction from October 2010.