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Carmen Bunzl - Universidad Pontificia Comillas

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Chapter 4. Case Study: Spain 207<br />

So far, the Grandfathering is used presently as the allocation rule, and for this<br />

reason it is analyzed here. The Marginal abatement costs approach is selected as it<br />

best satisfies the criteria of cost-efficiency. The Triptych approach has been used<br />

in the past for the internal EU burden-sharing during the Kyoto negotiations<br />

and as an alternative approach.<br />

3.3.2.1 Step 1: EU-wide cap for ETS and non-ETS<br />

Figure 4 – 23 illustrates the EU-wide cap for ETS and non-ETS for the three<br />

allocation approaches as well as the ‘EU 20% unilateral without CDM’ and ‘EU<br />

30% in a multilateral regime’ scenarios. It should be noted that the reductions<br />

presented for the three allocation methods are before emissions trading and<br />

CDM, and are independent of the final CDM amounts, and therefore ‘EU 20%<br />

unilateral with CDM’ gives similar results to ‘EU 20% unilateral without CDM’.<br />

For both the Triptych approach and the Marginal abatement costs approach, the<br />

reduction for the ETS sector, compared to the 1990 levels, exceeds the reduction<br />

in the non-ETS sector. The differences for a cost-effective approach –<br />

represented by the Marginal abatement costs approach – are small. However, as<br />

in the baseline scenario for 2020, the total emissions in the non-ETS sector<br />

(especially from transport) increase more than the emissions in the ETS sector<br />

(see column 4 in Figure 4 – 23). Compared to the baseline levels the reductions<br />

in the non-ETS sectors exceed the reductions in the ETS sectors, as reducing<br />

emissions in the non-ETS sector is more effective in terms of reduction<br />

potentials compared to the ETS sector.<br />

Escuela Técnica Superior de Ingeniería ICAI <strong>Carmen</strong> <strong>Bunzl</strong> Boulet Junio 2008

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