Greenhouse gas emissions trading in Europe

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Greenhouse gas emissions trading in Europe


Conditions for environmental credibility and economic efficiency

Emissions trading has been shunned for a long time by policy-makers in the European Union as an instrument of environmental policy. It was the Kyoto Protocol that put emissions trading firmly on the EU agenda for the first time. Ever since, discussions on implementing an EU-wide scheme have advanced at a rapid pace and, in the specific case of greenhouse gas emissions trading, the EU and some of its member states have gradually become a major reference point for this instrument.

CEPS created a Task Force on Emissions Trading and the New EU Climate Change Policy in October 2001 to engage a debate on how an EU scheme could fit into overall EU climate policy. Members of the Task Force came from a very broad range of backgrounds, including industry – energy production and supply companies, major energy-intensive industries and service companies – business associations, environmental non-governmental organisations and other stakeholders. Taking into account the contributions of the members of this Task Force, CEPS fellow researchers drafted a report on Greenhouse gas emissions trading in Europe focused on how to implement a workable greenhouse gas emissions trading in the European Union, notably in relation to the Commission’s proposed Directive to establish an EU-wide emissions-trading framework by 2005.

The following topics are considered:

  • The value of emissions trading: Efficient markets and effective targets
  • Crucial design options
  • How to get from here to there: A blueprint for translating national policies into an EU-wide emissions-trading scheme.

The report finally gives key messages and recommendations.


To read the executive summary of that report,

click here.

For more CEPS analyses, see the

CEPS website.  

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