The European Union (EU) aims to put Europe on track toward a low-carbon economy. In this striking challenge, the EU Emissions Trading System (EU ETS) has been singled out as the Union’s key climate policy instrument, ultimately aimed as a model for a global carbon market. The learning effect of the EU ETS could thus be tremendous. This study explores how the EU ETS actually works on the ground, affecting corporate climate strategies. It covers general sector responses as well as systematic comparative studies of companies across the sectors. The latter enables improved understanding of causal effects and the role of interaction between different policy instruments and other factors that impact corporate climate strategies. The study explores a broad set of mechanisms at play potentially linking the EU ETS to company climate strategies. These include how corporate norms of responsibility are affected by the EU ETS and how economic incentives provide opportunities for innovation. The book’s main contribution lies in its systematic examination of corporate responses to the EU ETS from a broad empirical and analytical social science perspective covering companies in all main EU ETS sectors: electric power, oil, cement, steel and pulp and paper.

chapter 1|18 pages


ByJon Birger Skjærseth, Per Ove Eikeland

chapter 2|25 pages

Analytical Framework

ByPer Ove Eikeland, Jon Birger Skjærseth

chapter 3|55 pages

Electric Power Industry

chapter 4|28 pages

Oil Industry

ByJon Birger Skjærseth

chapter 5|38 pages

Pulp and Paper Industry

ByLars H. Gulbrandsen, Christian Stenqvist

chapter 6|44 pages

Cement Industry

ByAnne Raaum Christensen

chapter 7|44 pages

Steel Industry

ByJørgen Wettestad, Liv Arntzen Løchen

chapter 8|30 pages

Comparative Analysis

ByJon Birger Skjærseth, Per Ove Eikeland

chapter 9|10 pages

Concluding Remarks and the Road Ahead

ByPer Ove Eikeland, Jon Birger Skjærseth