Will a 'set-aside' save the EU carbon markets?

Structural changes to the European carbon market are due to take effect in 2013. However, while the proposals could revive the ailing market, disagreement is rife on how to proceed, says Samuel Fenwick

EU ETS - structural issues

The future of the European Union Emissions Trading Scheme (EU ETS) – which is currently undergoing something of an existential crisis as the price of carbon is too low to stimulate investment in clean energy – now depends on what changes are made to the structure of the market in Phase III, beginning in 2013, say market experts.

Several initiatives have been put forward as potential ways of kick-starting the market and raising prices but the one gaining the most momentum is the introduction of a

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