List of Tables
List of Figures
1. Introduction
2. Governance Structures and Institutions: Examples from Existing International Agreements
2.1. Overview of Linking Agreements Currently in Force
2.2. Overview of Key Provisions in the Analysed Agreements
2.3. Observations on Governance Structures found in Relevant Agreements and MoUs
3. Design Options for Linking Agreements
3.1. Definitions
3.1.1. What Is “Linking”?
3.1.2. Allowing Flow of Units
3.1.3. Type of Linking Arrangement
3.2. Form of Linking Arrangement
3.2.1. Bilateral or Multilateral Agreement
3.2.2. Reciprocal Unilateral Arrangement
3.2.3. Role of Political and Economic Integration
3.3. Conclusions and Overall Assessment
4. Institutions, Structures and Mechanisms for the Joint Governance of Linked Schemes
4.1. A Dynamic Perspective on the Governance of Linked ETS
4.2. Coordination Mechanisms for the Joint Governance of Linked ETS
4.3. Differentiation for the type of link being established
4.4. Differentiation for the Mode of Operation
4.4.1. Mechanisms for Routine Operation
4.4.2. Change Management related to Adjustments During the Operation of an ETS
4.4.3. Change Management related to Periodic Reviews
4.4.4. Provisions for Extraordinary and / or Unforeseen Developments
4.5. Conclusions and Overall Assessment
5. Extending Linking Arrangements and Ensuring Compatibility with Multilateral Regimes
5.1. Multilateral Linking: Governance Implications
5.2. Alternative Frameworks for Multilateral Linking
5.2.1. Ad-hoc Multilateral Linking
5.2.2. Multilateral Linking through Chained Bilateral Links
5.2.3. Coordinated Multilateral Linking
5.2.4. Hybrid Approaches
6. Termination of the Linking Agreement
6.1. Introduction and Key Distinctions
6.2. Conditions for the Termination of the Linking Agreement
4 Designing Institutions, Structures and Mechanisms to Facilitate the Linking of Emissions Trading Schemes
6.2.1. Non-binding basis
6.2.2. International Treaty
6.3. Mechanisms and Procedure for the Termination of a Linking Agreement
6.3.1. Schedule and Timing of the Termination
6.3.2. Process for the Termination of the Link between two ETS
6.3.3. Treatment of Foreign Allowances during the Termination
6.4. Mechanisms for the Protection of Investors
7. Conclusions
8. References
9. Annex: Detailed Discussion of Relevant International Agreements
9.1. Regional Greenhouse Gas Initiative (RGGI)
9.1.1. RGGI Memorandum of Understanding (2005)
9.1.2. RGGI Model Rule for the Establishment of the RGGI CO2 Budget Trading Program (2013)
9.2. Western Climate Initiative (WCI)
9.2.1. WCI Memorandum of Understanding (2007)
9.2.2. Linking Agreement between California and Québec (2013)
9.3. European Emissions Trading System (EU ETS)
9.3.1. Agreement on the European Economic Area (1992)
9.3.2. Inclusion of Norway, Liechtenstein and Iceland into the EU ETS
9.3.3. Linking negotiations with Switzerland
9.3.4. Intended ETS linking with Australia
9.4. Other Environmental Agreements
9.4.1. US-Canada Air Quality Agreement (1991)
9.4.2. North American Agreement on Environmental Cooperation (1994)
9.5. Non-environmental Agreements
9.5.1. North American Free Trade Agreement (1994)
9.5.2. Free Trade Agreement between the Republic of Korea and the United States of America (1994)