Climate Policy after Copenhagen
The Role of Carbon Pricing

AUTHOR: Karsten Neuhoff



At the UN Climate Negotiations in Copenhagen, 117 heads of state concluded that low-carbon development is necessary in order to combat climate change. However, they could not agree on emission targets. At least one of the reasons why they could not agree is that low-carbon development is challenging because it requires the implementation of a portfolio of policies and programs. This book examines one the policies at the heart of attempts to create a low-carbon future: the European Emission Trading Scheme. It explores problems surrounding the implementation of such schemes, including the role of vested interests, the impact of subtle design details, and opportunities to attract long-term investments. It also shows how international climate cooperation can be designed to support the domestic implementation of policies for low-carbon development. This timely analysis of carbon pricing contains important lessons for all those concerned with the development of post-Copenhagen climate policy.

• Explains the economics of carbon pricing without using equations so that the book is more accessible to a broader set of actors
• Uses the example of the EU Emissions Trading Scheme to explore the politics, design and implementation of climate policy instruments
• Explores financial mechanisms to encourage/facilitate south-north cooperation and the links between domestic policy implementation and international cooperation



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