impact of climate negotiations on the returns on emission allowances

Climate change, as one of the global challenges of the future, requires innovative and effective measures. To this end, emissions trading schemes are expected to make a significant contribution to reducing greenhouse gas emissions. According to the World Bank, there were officially 40 mechanisms for pricing greenhouse gases in March 2017. International cooperation on global climate protection is also progressing, yet faces enormous challenges. The UN Framework Convention on Climate Change (UNFCCC) serves as the most significant negotiating platform. To better understand the relationship between two issues central to climate protection, this event study examines the effect of multilateral climate negotiations on the returns of emission allowances. Based on 15 negotiation outcomes of the UN Framework Convention on Climate Change between 2009 and 2016, the impact on price changes was calculated.