Authors
Peter Cox, Hugh Simpson, Stuart Turner
Europe – and within Europe, the UK – has taken the lead in establishing a marketbased approach to reducing greenhouse gas emissions. This report compares the post-trade infrastructure that has emerged to cater for emissions trading in Europe with the standards expected of the infrastructure supporting the major financial markets. Noting that the EU ETS was originally seen as principally a compliance mechanism and the infrastructure designed accordingly, its growth is indeed seen as a sign of success. However, when assessing the emissions market post-trade infrastructure against the best practice recommendations for securities market infrastructure, it is found that the emissions infrastructure does not meet all the recommendations.