Functioning of EU ETS with the new MSR

February 20, 2019 at 12:30 pm - 4:00 pm
Sitra, Itämerenkatu 11-13, Helsinki, Finland

How will the new Market Stability Reserve system affect the functioning of the European Union Emission Trading System (ETS)? Is the new Market Stability Reserve (MSR) sufficient for achieving the 1.5 degree target? How are overlapping domestic policies expected to affect EU wide emissions with the new MSR?

Since the start of 2019 the EU ETS has operated with a new Market Stability Reserve system. Based on new research papers from Prof. Dr. Grischa Perino (University of Hamburg) and Prof. Dr. Peter Birch Sørensen (University of Copenhagen and CESifo, former chairman of the Danish Council on Climate Change) the new system alters our previous knowledge on what would be the impacts of overlapping domestic climate policies in ETS sectors.

Therefore, Sitra has invited three top economics professors to tell more about their latest research results on the functioning of the EU ETS with the new MSR – and the best ways to decrease emissions in the ETS sectors along the 1.5 degree target. The seminar will take place in Sitra (address: Itämerenkatu 11-13, Helsinki) on Wednesday, February 20^th, at 12.30 – 16.00 (+drinks 16:00-17:30).

In addition to presentations by professors Perino and Sørensen, Prof. Dr. Herman Vollebergh (Tilburg University and PBL Netherlands Environmental Assessment Agency) will share his views on the topics of ETS functioning and the effectiveness of overlapping domestic policies. He will also provide more information on the latest plans to implement a price floor to the ETS sectors in the Netherlands.

Programme

12:30-12:45	Welcome words Dr. Mari Pantsar, Director of Carbon Neutral Circular Economy theme, Sitra
12:45-13:20	The impact of the Market Stability Reserve on the EU ETS Prof. Dr. Grischa Perino, Professor for Environmental Economics, Universität Hamburg
13:20-13:35	Questions to Perino
13:35-13:55	Coffee break
13:55-14:30	National Climate Policies and the European Emissions Trading System Prof. Dr. Peter Birch Sørensen, Professor of Economics, University of Copenhagen, and former chairman of the Danish Climate Council
14:30-14:45	Questions to Sørensen
14:45-15:20	EU ETS and domestic climate policy in the Netherlands Prof. Dr. Herman Vollebergh, Professor of Economics and Environmental Policy, Tilburg University, and Senior Research Fellow at the PBL Netherlands Environmental Assessment Agency
15:20-15:35	Questions to Vollebergh
15:35-16:00	Key messages to Finnish climate policies – discussion with all presenters Dr. Saara Tamminen & Dr. Outi Haanperä, Leading Specialists, Climate Solutions, Sitra
16:00-17:30	Drinks

The seminar will be academic in nature. Yet, it aims to provide also basic understanding about ETS and the new Market Stability Reserve system and its implications for all Finnish parties involved in designing climate policies.