Publication

This paper discusses the linkage between trade and climate change within the context of climate change negotiations. The authors consider the development of climate change negotiations within the EU from 1990 to 2008 and conclude that four ingredients are necessary for progress on the global level: strong leadership, burden sharing, financial support to less developed countries, and provisions reducing climate leakage and competitiveness concerns. The authors provide an in-depth study of the political economy of the reforms of the EU emissions trading system, outline the initial consultations on the post-2012 climate strategy and study the failed attempt to introduce a carbon tax.