The problem

Recently, the EU emission trading scheme for greenhouse gases was linked to the use of project-based mechanism: joint implementation and the clean development mechanism. This has led to questions on the potential of technology transfer to the host countries and the associated risk and the industrial impact for the enlarged EU.

Overview:

TETRIS explores the economic and industrial impacts as well as the prospects for achieving technology transfer associated with the implementation of the Kyoto flexible mechanisms.

The project will:

• explore the technology transfer related to the implementation of the Kyoto mechanisms in developing and EU accession countries
• incorporate the role of investment risk into the analysis of the emissions trading market
• examine various emissions trading schemes around the world and consider their compatibility with the proposed European scheme
• quantify the economic and industrial impacts of international emissions trading

Contribution to policy development:

Strategic objectives:

• Explore the potential of technology transfer in the host countries related to emissions trading in developing and EU accession countries
• Develop composite indicators of the investment climate for GHG abatement projects abroad and incorporate them into a study of emissions trading markets
• Extension of economic models to include the economic impacts of joint implementation and the clean development mechanism as one important driver for technology transfer

Project deliverables

• Report: overview of potential permit supply from major developing countries and regions –
  31 May 2006
• Report: potential for linking the EU trading scheme to other trading schemes – 31 May 2006
• Analysis: scope for joint implementation in eastern Europe – 31 May 2006
• Report: indicators for the investment climate for GHG abatement projects – 31 August 2006
• A literature review on the relation between technology transfer and project-based emission reductions– 31 August 2006
• Quantitative analysis using a world-scale model for emissions trading – 31 November 2006
• Final report including Policy recommendations – 31 November 2006

Dissemination

• The results will be made public at a final consortium meeting and a public conference – November 2006
• Dissemination of results will also be achieved through participation in public and scientific conferences - ongoing

Technical information

Project acronym: TETRIS
Project’s official full title: Technology Transfer and Investment Risk in International Emissions Trading
Research priority: 1.6. Assessment of environmental technologies for support of policy decisions, in particular concerning effective but low-cost technologies in the context of fulfilling environmental legislation
Specific webpage: www.zew.de/en/forschung/projekte.php3?action=detail&nr=486
Proposal/contract no: 6624
Start date: 1 June 2005
Kick off meeting: 6-7 June 2005
Completion date: 31 November 2006
European Commission scientific officer: Ger Klaassen (gerardus.klaassen@ec.europa.eu)

Coordinator:
Christopher Böhringer
Name: Centre for European Economic Research
Abbreviated name: ZEW
Address: PO Box 103443, 68 034 Mannheim
Country: Germany
Tel: +49 621 1235 01
Fax: (49) 0621 1235 226
Website: www.zew.de

Partners

Name: Ecoplan, Economic Research and Policy Consultancy
Abbreviated name: Not available
Country: Switzerland

Name: Energy Research Centre of the Netherlands
Abbreviated name: ECN
Country: The Netherlands

Name: Natsource-Tullet Europe
Abbreviated name: NTE
Country: UK  

Name: Centre for Clean Air Policy
Abbreviated name: CCAP
Country: Czech Republic