Introduction:

In this anthology, the editors want to review the first 12 years of European emissions trading, clarify its significance today and finally look ahead. To this end, they addressed renowned experts from science, business, politics, associations and organizations and asked for their views on the European emissions trading system (EU ETS). In this book there are articles with a retrospective focus, some of which are very personal but extremely colourful, depicting the exciting phase of the beginning from the direct perspective of the players involved. The articles in the book show broad agreement in the analysis and description of the deficits of the EU ETS. When it comes to the question of suitable solutions, however, the picture is more heterogeneous and quite controversial. At its core, the debate here centers on the need for minimum prices and/or more ambitious quantity control.

In the context of an optimized quantity control, several authors point out in particular the necessity of a well coordinated instrument mix – like e.g. the present contribution of Peter Heindl, Andreas Löschel and Oliver Schenker (ZEW/Uni Münster/Frankfurt School of Finance). This collection also contains references to the need to take a closer look at industry. Heindl/Löschel/Schenker also offer interesting empirical findings on the behaviour of trade actors (operators and intermediaries), who play an immanently important role in this market-based climate protection instrument.

With all its contributions, the book provides a comprehensive overview of the establishment, impact and further development of the European Emissions Trading System from the various perspectives of those involved. Many articles take up the negotiations on the reform of the EU ETS for the fourth trading period and the emerging results. The authors have well anticipated the main features of this decision, which is now available. In addition, individual contributions have been updated after 22 November 2017. The book has thus escaped a possible “topicality trap”, which reassures the editors very much.