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19 Jul 2006

The EU Emissions Trading Scheme: Taking Stock and Looking Ahead

Markus Åhman / Lars Zetterberg / Noriko Fujiwara / Christian Egenhofer

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This report contains an analysis on the review of the EU Emissions Trading scheme from a strategic and an operational perspective. It covers the implementation of the EU ETS undertaken to date, its linkages with investment decisions, the 2006 review and impacts on global carbon markets. The executive summary contains a number of concrete and operational policy recommendations for improving the EU ETS. The recommendations are primarily addressed to EU policy-makers but some of them may also be relevant to other key players influencing the functioning of the EU ETS. The main report delves more deeply into the key issues and provides the background for many of the policy recommendations.