Publication

The EU has a target of reducing overall greenhouse gas emissions to at least 20% below 1990 levels by 2020. To assist in achieving this legally binding goal and delivering emissions reductions at reduced economic cost, the EU Emission Trading System started in 2005, creating mandatory carbon trading within the EU. This POSTnote looks at the EU trading system’s mechanisms, comparing it with operational and proposed emissions trading systems elsewhere. Prospects of linking these to form an international system, and the alternatives, are also discussed.