At the UN Climate Negotiations in Copenhagen, 117 heads of state concluded that low-carbon development is necessary in order to combat climate change. However, they also understood that transition to a low-carbon economy requires the implementation of a portfolio of policies and programs - a challenging endeavour for any nation. This book addresses the need for information about factors impacting climate policy implementation, using as a case study one effort that is at the heart of attempts to create a low-carbon future: the European Emission Trading Scheme. It explores problems surrounding the implementation of the ETS, including the role of vested interests, the impact of design details and opportunities to attract long-term investments. It also shows how international climate cooperation can be designed to support the domestic implementation of low-carbon policies. This timely analysis of carbon pricing contains important lessons for all those concerned with the development of post-Copenhagen climate policy.

A timely analysis of carbon pricing that contains important lessons for anyone concerned with the development of post-Copenhagen climate policy.

1. Introduction 2. The role of a climate policy mix 3. Implementing a carbon price, the example of cap and trade 4. Shifting investment to low-carbon choices 5. Co-operation among developed countries - a role for carbon markets? 6. A world of different carbon prices 7. International support for low-carbon growth in developing countries 8. Conclusion References Index.