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CO2.1: Beyond the EU's Emissions Trading System

David Merlin-Jones, January 2012

Merlin-Jones argues that the EU’s Emissions Trading System (EU ETS) will have no effect on many companies’ emissions until 2016-18, over a decade after it came into force. It is so ineffective and expensive that attempts to patch it up are doomed to failure. A new approach to carbon reduction is required. He proposes a new flat carbon tax to replace the EU ETS and all other green levies and taxes, and argues that if low-carbon power becomes economically viable without subsidy, it will succeed by market forces, without the need for treaties, subsidies or regulations.

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