Cost-containment mechanisms and market oversight

The ENTRACTE research project is aiming to analyse the European climate policy portfolio with special emphasis on the role of interactions between its different parts. The project’s ultimate goal is to provide pragmatic guidance to policy makers for designing effective, cost efficient and politically and legally feasible climate policy portfolios.

This report on “EU-ETS: Reform and Expansion” studies (i) different designs of the Market Stability Reserve under extreme permit prices and compliance cost outcomes and (ii) investigates Carbon Market Oversight mechanisms addressing market abuse and failure.

Authors: Luca Taschini, Corina Comendant