Carbon Trading Policy Implementation

For the UK Government, IPA Energy + Water Economics carried out a study to assess the impact of the EU Emissions Trading Scheme (EU ETS) on investment decisions in the UK power generation sector, and consequent impacts on energy security of supply. The study also investigated the impact of the EU ETS on power prices within GB and around Europe, and how the relativity of wholesale and retail prices would change over the forecast horizon. The study examined in detail the impact of allocation decisions over Phase II (2008-2012) of the EU ETS, to inform policy developments.