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The Kyoto Protocol, an amendment to the United Nations Framework Convention on Climate Change, commits developed nations to reductions in greenhouse gas, GHG, emissions over a four-year period beginning in 2008. The European Union's Emissions Trading Scheme ratified the protocol as a block, and divided its GHG emission reduction commitments under the treaty among Member States. The Emissions Trading Scheme is one of several market-based flexible mechanisms allowed under the protocol. 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 in July 2003

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.

Evaluates the first month of the European Union’s (EU) Emissions Trading Scheme in 2005. Trade-in of more than five million metric tons carbon dioxide equivalent emissions in the form of EU allowances; Analysis of pertinent topics and relevant issues; Implications on environmental policy and protection.