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The article reports on the imposition of tougher limits on carbon dioxide emissions in Europe. The European Commission has announced tough limits on carbon dioxide emissions for 10 of the European Union's (EU) member states under the second phase of the emission trading scheme (ETS) of EU, which will run from 2008 until 2012. The 10 countries would have to cut their carbon dioxide emissions during the period by 7% compared with levels they had been allocated for the first phase of the ETS from 2005-07.