28 Apr '11, 12pm

Europe’s CO2 Trading Scheme: Is it Time for a Major Overhaul?

Europe’s CO2 Trading Scheme: Is it Time for a Major Overhaul? Now in its seventh year, the EU’s carbon emissions trading system is the only international program designed to use market mechanisms to control CO2 emissions. But critics contend it has done little to slow the release of CO2 and argue that it should be significantly reformed — or scrapped. by ben schiller When it was launched in 2005, the European Union’s Emissions Trading Scheme (EU ETS) was hailed as a major step forward in the fight against climate change. Covering 12,000 power plants, factories, and other industrial facilities — and nearly half of EU CO2 emissions — it was the world’s largest cap-and-trade project to date. EU officials saw it as the first of many carbon-pricing schemes that would eventually cover the globe. Six years later that vision is looking a little clouded. With the EU ETS accused of ...

Full article: http://e360.yale.edu/feature/europes_co2_trading_scheme_i...

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