ICAP has released two new ETS Briefs on the topics of allocation and flexibility in emissions trading.

ETS Brief #6 explores the nuts and bolts of one of the core issues in ETS – allowance allocation or how emissions permits are distributed to participating entities. ETS Brief #7 outlines policy options that can enhance the flexibility of an ETS, such as offsets, banking, and borrowing. The new briefs continue a series aimed at explaining the basic concepts of emissions trading to a broad audience. The full series of ETS Briefs released to date (including #1 What is emissions trading; #2 Seven arguments for emissions trading; #3 Emissions trading at a glance, #4 Linking ETS; and #5 ETS revenues) are available here.