Domestic Emissions Trading

This document provides an overview and
summary assessment of lessons and insights learned from
various existing and presented domestic cap and trade
schemes. For each scheme, a set of general characteristics
(or issues) is considered. The characteristics (or issues)
covered include the following: (i) coverage and scope; (ii)
setting a cap; (iii) setting the points of obligation; (iv)
allocation of allowances; (v) systems for domestic
monitoring, reporting and verification, (MRV) and
compliance; (vi) enabling trading and fostering stability;
(vii) institutional arrangements, including technical and
legal infrastructures; and (viii) use of offsets and
linking. The domestic emissions trading schemes (ETS)
included in this assessment are the following: (i) European
Union (EU) ETS; (ii) New Zealand (NZ) ETS; (iii) United
States (U.S.) northeast states regional greenhouse gas
initiative (RGGI); (iv) California (Cal) ETS; (v) Australia
clean energy future carbon pricing mechanism (Aus CPM); and
(vi) Tokyo cap and trade program (C and T).