Linking the EU's Emissions Trading System to Any Future US Emissions Trading Scheme

EXECUTIVE SUMMARY
1. INTRODUCTION
2. OVERVIEW OF CURRENT AND EMERGING GHG EMISSION TRADING SCHEMES IN THE US
2.1 Federal Initiatives
2.2 Regional Initiatives
2.2.1 Regional Greenhouse Gas Initiative (RGGI)
2.2.2 Western Climate Initiative (WCI)
2.2.3 Midwestern Greenhouse Gas Accord (MGGA)
2.2.4 Mayors’ Climate Protection Agreement
2.3 State Initiatives: The California Global Warming Solutions Act (AB32) and California Climate Exchange (CaCX)
2.4 Voluntary Initiatives: The Chicago Climate Exchange (CCX)
3 CASE STUDY: THE CLIMATE SECURITY ACT OF 2008
3.1 Allocation Method
3.2 Sectoral Arrangements
3.3 Cost Containment
3.4 Offsets
3.5 Technology and Research & Development
3.6 Oversight and Enforcement
3.7 Border Adjustment Measures
3.7.1 Country Coverage
3.7.2 Coverage of Goods
3.7.3 Calculation of the Adjustment
3.7.4 International Negotiations
3.7.5 Timing of Measures and Revisions
3.7.6 Comparison between the US and the EU
3.7.7 Implications for Linking Trading Schemes
3.8 International Cooperation and Partnerships
4 COMPATIBILITY OF THE EU ETS AND PROPOSED US ETS
4.1 Overview of Relevant Design Features
4.2 Prospects of Linking: An Assessment
5 PROPOSED EMISSIONS TRADING SCHEME IN THE US AND WORLD TRADE LAW
5.1 Introduction: Competitiveness Concerns in the US
5.1.1 Byrd-Hagel and the US Withdrawal from Kyoto
5.1.2 The Rationale for Border Adjustment Measures in the US
5.1.3 The IBEW/AEP proposal
5.1.4 Border Adjustment Measures and World Trade Law
5.1.5 Market Access
5.2 National Treatment
5.3 Most-favoured Nation Treatment
5.4 Environmental Exceptions
5.4.1 Art. XX(b) and XX(g)
5.4.2 Art. XX Chapeau
5.4.3 Overview
6 CONCLUSIONS
ABBREVIATIONS
REFERENCES
ANNEX I: LEGISLATIVE PROPOSALS INTRODUCED IN THE 110TH CONGRESS – EMISSION PATHWAYS