Implementation of the funding mechanisms in the fourth phase of the EU ETS: state of play


The revision for the fourth phase of the EU Emission Trading System (ETS), covering the period 2021 - 2030, introduced a number of changes concerning the funding mechanisms for climate and transition purposes in the system. Last year, ERCST and CEEP produced a paper on these funding mechanisms, which discussed their respective functioning, eligibility, size, explained how they are related to each other, and highlighted a number of issues and questions that should be addressed during the implementation phase. Since then, a number of new developments have taken place that are worth discussing.This paper:

  • provides an update on the state of play of the implementation process of the four funding mechanisms;
  • highlights some of the main takeaways from the stakeholder sentiment analysis; and
  • sheds light on the decisions made by eligible Member States regarding the use of Article 10c Derogation and the flexibility mechanism.

Author(s): Andrei Marcu, Maciej Jakubik, Domien Vangenechten and Michal Dlugosz

Reflection note on "Strategic challenges to the EU ETs in the long-term" brainstorm session


This reflection note should be read as general reflections from ERCST to the brainstorm session organised on September 27, which was intended to discuss, and discover key issues which need to be explored, as well as possibly identify work that may need to be done in the mid to long-term to help the EU ETS to remain resilient, relevant and acceptable.

Author(s): Andrei Marcu, Jean-Yves Caneill, Domien Vangenechten

Summary note on "incentivising carbon dioxide removal technologies" brainstorm session


There is a current lack of incentives for Carbon Dioxide Removal Technologies (CDRTs), with clear financial and/or regulatory frameworks missing in some cases. This is despite the vital need for developing these nascent CDRTs in order to remain within the 1.5-degree goal, as highlighted by multiple scenarios from the IPCC, European Commission and other key actors. This summary note, following the brainstorm session organised on September 24 focuses on the questions and issues surrounding the enabling regulatory and financial framework necessary for deploying these technologies at scale.

Author(s): Andrei Marcu, Federico Cecchetti and Maria Antonia Reis Teixeira da Costa 

Linkages between Cooperative Approaches, Transparency and Compliance (Articles 6, 13 and 15 of the Paris Agreement)


This Policy Brief identifies linkages between cooperative approaches provided for in Article 6 (in particular guidance for Article 6, paragraph 2, and the rules, modalities and procedures for Article 6, paragraph 4), the modalities, procedures and guidelines for the Transparency Framework, and the Modalities and Procedures for the committee established by Art. 15.

Author(s): Christina Voigt

Appeal Procedure for the Mechanism Established by Art. 6.4 of the Paris Agreement


This Policy Brief gives a brief overview for the reasons advocating for an appeal procedure to be included in the governance structure for the mechanism established in Article 6.4 of the Paris Agreement, including lessons learned from the Clean Development mechanism (CDM). It will then assess different possible options for such an appeal procedure.

Author(s): Christina Voigt

Feedback on the draft implementing regulation laying down arrangements for the adjustments to free allocation of emission allowances due to activity level changes


This paper represents ERCST's feedback to the European Commission's draft implementing regulation regarding free allocation adjustments due to activity level changes. 

Author(s): Domien Vangenechten

Flow of tracking ITMOs & performing, reporting, recording and review of corresponding adjustments


This reflection paper aims to explore these differences in understanding and interpretation of the flow of tracking of ITMOs and performing, reporting, recording, and review of corresponding adjustments, and tries to capture what they imply by these different views, when looking from the perspective of practical implications. The paper is not intended to advocate any particular position.

Author(s): Andrei Marcu & Supanut Chotevitayatarakorn, TGO

2019 State of the EU ETS Report


The yearly State of the EU ETS Report aims to be an independent contribution to the policy debate, which is needed to ensure that the EU ETS is “fit for purpose.” This report discusses the current state of play in the EU ETS while abstaining, to the extent possible, from providing solutions. 

This report is undertaken by ERCST, ICIS, I4CE, EcoAct and the Wegener Center

Author(s): Andrei Marcu, Emilie Alberola, Jean-Yevs Caneill, Matteo Mazzoni, Stefan P. Schleicher, Wijnand Stoefs, Charlotte Vailles, Domien Vangenechten and Federico Cecchetti

The 'Article 15 Committee' to Facilitate Implementation and Promote Compliance


This policy brief outlines the modalities and procedures for the operation of the 'Article 15 committee', as set up by Article 15 of the Paris Agreement, looking at the nature, composition, competences and decision-making of the Committee. It gives an overview of the ways in which issues will be brought before the Committee, how the Committee could respond and possible further steps in its development.

Author(s): Christina Voigt

Corresponding Adjustments: Interpretation of the “Buffer Account"


This paper aims to address a reoccurring issue in the Article 6 "corresponding adjustments" negotiations for further elaboration: namely, what is to be adjusted under the "buffer account approach". It provides a brief overview of this approach, providing an example formula and an illustrative example, in order to help clarify any remaining confusion.

Author(s): Andrei Marcu

Possible Interpretation of Discussions on Article 6.4 and Corresponding Adjustments


This paper offers our interpretation and understanding of the discussion surrounding these issues. It gives a brief overview of the following topics and issues: First Transfer for Article 6.4 units; Corresponding adjustments; What is meant by beyond NDC; and NDC Accounting vs. Inventory Accounting.

Author(s): Andrei Marcu & Chandra Sinha 

Reflections Post-Katowice


This paper offers key insight into some of the pivotal issues and reflections surrounding the  negotiations and outcomes of Article 6 of the Paris Agreement from the COP 24 in Katowice.

Author(s): Andrei Marcu

Rulebook for Article 6 of the Paris Agreement - Takeaway from the COP 24 outcome


In order to better understand the Article 6 outcomes from COP 24 in Katowice, this paper examines and compares the different versions of text that emerged at key moments in the two weeks of negotiations, and tries to identify evolution and changes in key issues in the text, and discuss and analyse these changes.

Author(s): Andrei Marcu and Mandy Rambharos

Position Paper - Free allcoation adjustments due to activity level changes in Phase 4 of the EU ETS


This position paper accompanied ERCST's response to the European Commission's public consultation regarding the implementing act on free allocation adjustments due to activity level changes. 

Author(s): Andrei Marcu, Wijnand Stoefs and Domien Vangenechten

The EU's NDC after the Talanoa Dialogue - Options paper


This paper explores a number of major options that the EU could consider if the decision is made to enhance the EU NDC. It shows that the options are varied, with significant differences in terms of additional mitigation effort, political will and environmental impacts.

Author(s): Andrei Marcu, Simone Borghesi, Wijnand Stoefs, Isabella Alloisio, Francesco Nicolli, Domien Vangenechten

The EU's NDC after the Talanoa Dialogue - Policy paper


This paper accompanies the 'Options paper' on ways to enhance the EU's NDC after the Talanoa Dialogue. It was released right before COP 24 in Katowice. It draws a number of overall conclusions based on discussions held with stakeholders, both through a survey as well as through workshops organised in Bratislava, Brussels, Bucharest, Florence, Prague and Warsaw.

Author(s): Andrei Marcu and Simone Borghesi

Funding Mechanisms in the fourth phase of the EU ETS: Exploring what is known and identifying issues for clarification and discussion


This paper has two objectives: Firstly, it aims to lay out the components and provide an understanding of the functioning of these different funding mechanisms embedded within the EU ETS, and explore how they are articulated to one another. Secondly, it tries to identify issues that need to be further understood and clarified in terms of the operationalisation of the four funding mechanisms.

Author(s): Andrei Marcu, Jean-Yves Caneill, Wijnand Stoefs,  Domien Vangenechten

Article 6.2 Advanced Options Paper


This advanced options paper on article 6, paragraph 2 of the Paris Agreement is an update of the option paper (Straw Man) jointly produced by Reed Smith and ICTSD in February 2018.

Author(s): Andrei Marcu, Peter Zaman

Northeast Asia Carbon Market and Trade Connections


This Asia Society Policy Institute (ASPI) and ICTSD report focuses on carbon pricing and the linking of carbon pricing systems as a potential catalyst for increased trade relationships.

Author(s): Andrei Marcu, ASPI

Decoding Article 6 of the Paris Agreement


This publication examines the options for establishing guidance, rules, and modalities for the key elements of Article 6, decoding main issues.

Author(s): Andrei Marcu

What is standing in the way of a happy ending? Reflections on Art 6 before SBSTA 48


This paper is intended as a reflection on some of the issues that need to be recognised, and may need attention, if we are to deliver at the COP in Katowice.

Author(s): Andrei Marcu

Glossary of Terms for Article 6.2


This Glossary of Terms is meant as a starting point for discussion and will be improved as we get comments and as negotiations progress.

Author(s): Andrei Marcu

Developing the EU Long-Term Strategy. Technical paper


This technical paper is the outcome of a year-long effort, which included a series of stakeholder engagements in five EU capitals at the beginning of 2018.

Author(s): Andrei Marcu, Georg Zachmann, Samuel Gonzalez Holguera, Wijnand Stoefs

Developing the EU Long-Term Strategy. Policy paper


This policy paper seeks to develop a series of consistent choices upon which the new European Long-Term Climate Strategy can be built. It is produced under the project “Developing the EU Long-Term Climate Strategy". 

Author(s): Andrei Marcu, Georg Zachmann

2018 State of the EU ETS Report


The EU Emissions Trading System (EU ETS) is important through its role as the “cornerstone” of EU climate change policy as well as a “role model” and “pioneer” for carbon markets. 

Author(s): Andrei Marcu, Emilie Alberola, Jean-Yevs Caneill, Matteo Mazzoni, Stefan P. Schleicher, Wijnand Stoefs, Charlotte Vailles, Domien Vangenechten

Managing a Sustainable Transition to a Low-carbon Society: The Socio-economic Impacts of Mitigation


This policy brief looks at how to identify and manage the expected and unintended socio-economic impacts of greenhouse gas (GHG) mitigation policies. 

Author(s): Andrei Marcu, Domien Vangenechten

"Straw Man" for Article 6.2


This paper seeks to capture some of the issues that need to be addressed in the rulebook for article 6 of the Paris Agreement, and unpack the options for each issue, with the intention of catalyzing a discussion among Parties.

Author(s): Andrei Marcu, Peter Zaman

Issues and Options: elements for text under Art. 6


This paper seeks to capture some of the issues that need to be addressed in the rulebook for article 6 of the Paris Agreement, and unpack the options for each issue, with the intention of catalyzing a discussion among Parties.

Author(s): Andrei Marcu, Wijnand Stoefs, Domien Vanegenechten, Oliver Martin-Harvey, Samuel González Holguera

Addressing policy overlaps through the governance of the Energy Union


This paper addresses what the Governance proposal does not currently include, specifically, provisions to address interactions between elements of the Energy Union. 

Author(s): Andrei Marcu, Wijnand Stoefs and Samuel González Holguera

2017 State of the EU ETS Report


This report discusses the current state of play in the EU ETS while abstaining, to the extent possible, from providing solutions.

Author(s): Andrei Marcu, Emilie Alberola, Jean-Yves Caneill, Matteo Mazzoni, Stefan Schleicher, Wijnand Stoefs and Charlotte Vailles

Issues for discussion to operationalise Article 6 of the Paris Agreement


This paper focuses on the issues that emerged from previous discussions and submissions and which the author believes will require further examination as part of the effort to make Article 6 operational. 

Author(s): Andrei Marcu

Article 6 of the Paris Agreement Reflections on Submissions by Parties before Marrakech


This paper examines submissions made prior to COP 22 on views related to guidance for the Article 6 items. It highlights the many important issues covered in them and discusses implications of the various interpretations. 

Author(s): Andrei Marcu

Views on Mitigation Value and its Application


This paper analyses the concept of mitigation value and its application, and the relationship between mitigation value and compliance value. 

Author(s): Andrei Marcu