The advantages and disadvantages of EU carbon trading

Abstract

To solve the problem of greenhouse gas emissions, the European carbon emissions trading system was born in the era of European carbon emission reduction. It is the world 's largest carbon emissions trading market. First of all, it is a successful case: it has achieved remarkable results in dealing with climate change, triggered a continuous reduction in total carbon emissions and accumulated rich experience, and also contributed to the development of the EU carbon finance field. However, there are still some drawbacks: excess supply reduces the cost of polluters, resulting in a continuous decline in the price of quotas. Some of these efforts will be offset by unreasonable quota allocation and entrenched problems in the EU carbon trading system. Carbon trading reform is imperative.