Publication

This report reviews the experiences of the EU emissions trading system's (ETS) pilot phase from 2005-07, assesses the adjustments introduced in the second phase (2008-12) and looks ahead to the radical changes that will come into effect in the forthcoming third trading period starting in 2013. The analysis covers the principal controversies that the ETS has provoked both in the EU/EEA and in international negotiations, such as its environmental effectiveness, economic rents, windfall profits and fairness, and its impact on industrial competitiveness.