As waves of isolationism and protectionism sweep through the world we live in today, we find ourselves caught in the tension between national sovereignty and supranational integration.
The European Union, at present, is undergoing a period of great instability, marked by – most notably – Brexit, the unresolved Eurozone Crisis, which portends a looming financial crisis, and its contentious immigration policy. The longevity of the supranational organisation is hence called into question, and whether the ideal of “deeper EU integration” on both economic and social fronts can be preserved against opposition from its very members.
Delegates are to consider how differing opinions on determining the future direction of the EU can find middle ground. To do so, delegates should understand the various determinants which led to the EU’s fragmentation – as its roots go deeper than the European Refugee Crisis and its resultant conflict.
The European Union Emissions Trading System (EU ETS) was officially launched in 2015, and was deemed as a cornerstone policy in tackling the issue of cutting greenhouse gases emissions at least cost. The ETS operates on a ‘cap and trade’ principle by putting a price on carbon and thereby giving a financial value to each tonne of emissions saved. Inspiring other major economic nations such as China to follow suit, the EU ETS is the first and has remained the world’s largest carbon markets today.
However, as the system moved on to its third phase of implementation after 2013, the EU carbon market seemed to find itself in chaos. From 2013 to 2020, 16 million tonnes of carbon permits are allocated to firms in Europe. However, it soon turned out that the EU had given away too much allowance and a massive overcapacity of the EU carbon market therefore emerged. With the carbon prices nearing zero, the ETS is now unable to keep up with targeted emission reduction. Still, simply taking out the previously allocated free allowances from the EU market is no easy task, and is facing violent objections from countries relying on carbon-intensive industries. Delegates are expected to discuss the different aspects that undermine the efficiency of ETS and hence come up with the most feasible model of reformation of the system.
To be updated soon!