The limited effect of EU emissions trading on corporate climate strategies: Comparison of a Swedish and a Norwegian pulp and paper company

Gulbrandsen, Lars H.; Stenqvist, Christian

doi:10.1016/j.enpol.2013.01.014

Cited by 50 publications

(30 citation statements)

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“…However, arguments from business economics and bottom-up studies on firm behaviour suggest that free allocation and firm-level oversupply of EUAs could dampen firm responses in terms of innovation and investments in low-carbon solutions and thereby decrease the efficiency of the system (Abrell et al, 2011, Gulbrandsen & Stenqvist, 2013aMartin et al, 2014;Rogge et al, 2011;Skjaerseth & Eikeland, 2013). Furthermore, allocation substantially more compared to expected emissions could damage the perception of the system among stakeholders such as NGOs and competing industries see e.g.…”

Section: Discussionmentioning

confidence: 99%

“…In particular for the pulp and paper sector there are studies of corporate responses that cover industries in countries such as Italy, Sweden, Norway and Germany (e.g. Gasbarro et al, 2013;Gulbrandsen & Stenqvist, 2013a;Rogge et al, 2011). These studies conclude that EU ETS has brought some organisational changes while the effects are limited in terms of triggering of innovative low-carbon solutions and long-term climate strategies.…”

Section: Aim and Scopementioning

confidence: 99%

“…These studies conclude that EU ETS has brought some organisational changes while the effects are limited in terms of triggering of innovative low-carbon solutions and long-term climate strategies. The carbon price tag is not fully integrated in the firm's operational practices (Rogge et al, 2011) and is anyhow a minor incentive among the many factors that underpin investment decisions in the pulp and paper industry (Gulbrandsen & Stenqvist, 2013a). The lack of stringency with a high share of free allocation, the possibility of different perceptions about real cost versus opportunity costs, and the volatile but often low EUAs price are suggested explanations for the limited effects of EU ETS so far.…”

Section: Aim and Scopementioning

confidence: 99%

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Free allocation in the 3rd EU ETS period: assessing two manufacturing sectors

Stenqvist

Åhman

2014

Climate Policy

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Free allocation in hte 3rd EU ETS period: assessing two manufacturing sectorsStenqvist, Christian; Åhman, Max Link to publication Citation for published version (APA): Stenqvist, C., & Åhman, M. (2016). Free allocation in hte 3rd EU ETS period: assessing two manufacturing sectors. Climate Policy, 16(2), 125-144. DOI: 10.1080125-144. DOI: 10. /14693062.2014 General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights.• Users may download and print one copy of any publication from the public portal for the purpose of private study or research.• You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. 1Free allocation in the 3 rd EU ETS period: assessing two manufacturing sectors AbstractThis paper provides an analysis of the EU ETS harmonised benchmark-based allocation procedures by comparing two energy-intensive sectors with activities in three Member States (MS); the cement industry (CEI) and the pulp and paper industry (PPI) in UK, Sweden and France. Results show that the new procedures are better suited for the homogenous CEI, for which allocation is to decrease in a consistent manner. For the heterogeneous PPI -with diverse product portfolios, technical infrastructure and fuel-mixes -the allocation procedures cause dispersed outcomes. The lack of product benchmark curves, biased reference values on fuel-mix and specific energy use as well as other issues, leads to allocations that do not represent the average performance of the 10% most GHG efficient installations. Another issue with the 3 rd phase allocation procedure is that grandfathering is still present via the historically based production volumes. How to deal with structural change and provisions regarding capacity reductions and partial cessation is an issue, which is highly relevant for the PPI but less so for the CEI. In manufacturing sectors such as cement industry (CEI) and pulp and paper industry (PPI), the new banchmark-based allocation procedures have managed to reduce the EU-wide free allocation in the 3 rd period compared with the 2 nd period. For the homogenous CEI the outcome of stricter allocation is consistent between Member States. However, free allocation based on grandfathering of prerecession activity levels and CO2 performances is likely to create long positions in coming years. Our results disclose differing outcomes between sectors and Member States, with cases of conspicuous supply of allowances in the heterogeneous PPI. Lack of product benchmark curves, biased reference values on fuel-mix and...

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Section: Discussionmentioning

confidence: 99%

Section: Aim and Scopementioning

confidence: 99%

Section: Aim and Scopementioning

confidence: 99%

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Free allocation in the 3rd EU ETS period: assessing two manufacturing sectors

Stenqvist

Åhman

2014

Climate Policy

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“…In a cap-and-trade system the total amount of emissions is politically decided and gradually lowered over time. While being costly for certain industries, Swedish ENRIs have in general benefitted from the EU ETS allocation as their emissions were lower than the European average in comparable sectors, in particular for the pulp and paper industry (Gullbrandsen and Stenqvist 2013).…”

Section: Dominance Of the Economic Imperative In Climate Governance Omentioning

confidence: 99%

“…The EU ETS has the potential to be an effective policy instrument but its steering capacity regarding emission reductions and particularly low-carbon innovation has been low due to over-allocation of emission allowances and a low carbon price (Gullbrandsen andStenqvist 2013, Bel andJoseph 2014). As a result, individual member states have started to implement national policies to make up for the deficiencies of the EU ETS (Marcu et al 2016).…”

Section: Dominance Of the Economic Imperative In Climate Governance Omentioning

confidence: 99%

The green state and industrial decarbonisation

Hildingsson

Kronsell

Khan

2018

Environmental Politics

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The large share of carbon emitted by energy-intensive industries in the extraction and processing of basic materials must be limited to decarbonise society and the economy. Ways in which the state can govern industrial decarbonisation and contributes to green state theory are explored by addressing a largely ignored issue: the green state's industrial relations and its role in industrial governance. With insights from a Swedish case study, the tension between the state's economic imperative and ecological concerns in greening industry are shown to persist. However, as the energy-intensive industry's previously privileged position in the economy is weakening, industry is opened to decarbonisation strategies. While the case exposes a number of governance challenges, it also suggests potential areas where the state can pursue decarbonisation in energy-intensive industry and points the way to an active role of the green state in governing industrial decarbonisation and greening industry.

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Carbon emissions trading policy, carbon finance, and carbon emissions reduction: evidence from a quasi-natural experiment in China

Guo

Chiao

2021

Econ Change Restruct

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The purpose of this paper is to explore whether the implementation of carbon emissions trading policy (CETP) promotes carbon finance, proxied by investment and financing facilitating carbon emissions reduction (IFCER), and reduces carbon emissions. Evidence shows that first, CETP is effective in stimulating IFCER and reducing carbon emissions. Second, the effects of CETP persist over time. Third, the effects of CETP taking effect in pilot regions can spill over to non-pilot regions nearby. Fourth, the effect is more pronounced in eastern and wealthy regions. Finally, R&D and industrial upgrading have a mediating effect linking CETP to IFCER and carbon emissions.

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The limited effect of EU emissions trading on corporate climate strategies: Comparison of a Swedish and a Norwegian pulp and paper company

Cited by 50 publications

References 12 publications

Free allocation in the 3rd EU ETS period: assessing two manufacturing sectors

Free allocation in the 3rd EU ETS period: assessing two manufacturing sectors

The green state and industrial decarbonisation

Carbon emissions trading policy, carbon finance, and carbon emissions reduction: evidence from a quasi-natural experiment in China

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