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The article reports that the European Union's (EU) Greenhouse Gas (GHG) Emissions Trading Scheme (ETS), the largest such multinational, multi-sector market, officially opened for business 3 January 2005. In a reversal of typical spring weather patterns, trading started fairly mildly, but is expected to become more robust over the next couple of months. EU industries conducted no transactions on the market's opening day, and, at this writing, only a handful of forward trades have occurred. However, as more industries are assured of their carbon dioxide (CO2) emission allowances, and more trading bourses come on-line, both the number and volume of trades are expected to rise.

The article reports that the European Union's (EU) Emissions Trading Scheme (ETS) opened in January 2005 as a market-based means for Member States to reach their greenhouse gas (GHG) reduction commitments under both EU law and the Kyoto Protocol. To participate in the ETS, each Member State developed a National Allocation Plan (NAP) limiting the carbon dioxide equivalent emissions from regulated facilities to meet national GHG reduction goals during the first phase of the scheme. Entry into the trading process is further contingent upon NAP approval by the European Commission. However, the success of the ETS in realizing Member States' goals of both reducing GHG emissions and mitigating global warming is likely to require continuous enforcement, re-evaluation, and renewal of its supporting policies.

The article reports that carbon prices and volumes are up; brokers commission prices are down, according to recent statistics regarding transactions on the European Union's Emissions Trading Scheme. Although prices on the market were initially volatile, apparently in response to political uncertainties, according to an early March 2005 statement by Point Carbon analyst Stian Reklev, now the price is being determined more by fundamentals, like temperatures and rainfall. It's settling into a normal market. Market prices began climbing more steeply in mid-February 2005, coincidentally with the Kyoto Protocol's entry into force.

The article focuses on the policy adopted by Great Britain toward climate change and greenhouse gas emission. The article reports that environmental groups have challenged the credibility of his position on climate change, based on Great Britain's continued "softening" of its National Allocation Plan (NAP) for greenhouse gas (GHG) emission allowances, a necessary prerequisite to participation in the European Union's (EU's) Emissions Trading Scheme (ETS). Reluctance on the part of Great Britain (and other EU Member States) to set specific, restrictive GHG emission reduction goals at the Council level for 2050 has the potential to diminish efforts toward mitigating global climate change. INSET: What is the G8?.

Reports on the European Union (EU) Council's adoption of a"linking directive" which establish a scheme for greenhouse gas (GHG) emission allowance trading within the European Community. Linking of the Kyoto Protocol flexible mechanism of Joint Implementation and the Clean Development Mechanism to the EU Emissions Trading Scheme (ETS); Terms under the ETS Directive.

In early July, 2004 the European Commission (EC) posted the first written warnings to two European Union (EU) Member States, Greece and Italy, regarding their tardy National Allocation Plan (NAP) submittals. The action made good on a mid-May announcement by Environment Commissioner Margot Wallström that infringement proceedings would soon be brought against those countries among the original 15 EU Member States still lacking NAPs. The EC concluded its assessment of eight NAPs on July 7, 2004. Five of the NAPs, from Denmark, Ireland, the Netherlands, Slovenia, and Sweden, were approved unconditionally.

Almost immediately upon the July 1, 2004 rotation of the European Commission presidency to the Netherlands, Pieter Van Geel, Dutch Secretary of State for the Environment, announced the country's intention to use the opportunity to direct the European Union (EU) to establish further reductions in international greenhouse gas (GHG) emissions. Van Geel proposes a goal of decreasing global GHG emissions to 30 percent below 1990 baseline levels by 2020. The current EU obligation under both EU policy and the Kyoto Protocol, an international treaty to reduce GHG emissions from developed nations, requires cutting GHG emissions to a cumulative 8 percent below 1990 baseline levels during the 2008 to 2012 "commitment period.

Reports that the cumulative carbon dioxide equivalent trading volume of the Chicago Climate Exchange, a United States-based, multi-national greenhouse gas emissions reduction market, passed the one million metric ton mark in June 2004. Price on the exchange per metric ton of carbon dioxide equivalent; European Union's Emissions Trading Scheme as of mid-May 2004.

Focuses on the agreement between the Chicago Climate Exchange Inc. and International Petroleum Exchange to provide a marketplace for European Union emissions trading. Terms of the agreement;

Alexander de Roo presented a draft legislative resolution regarding specifics of linking flexible mechanisms under the Kyoto Protocol to the European Union's Emissions Trading Scheme. Joint Implementation and Clean Development Mechanism allow parties to the Kyoto Protocol to invest in projects aimed at reducing greenhouse gases in Eastern Europe or developing countries to offset their emissions. A proposal to amend the EU Emissions Trading Directive to allow for credits from emission reduction projects in other countries was put forth by the Commission of European Communities.