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The article discusses several decisions issued by U.S. federal and state courts between October 1, 2016, and September 30, 2017 concerning toxic tort and environmental law. It reports several cases including "Petitpas v. Ford Motor Co.," that held no duty was owed to an allegedly exposed worker's girlfriend; Supreme Court's distinction between misfeasance and nonfeasance in "Riedel v. ICI Americas Inc.; and "Georgia Pacific, LLC v. Farrar" related to product containing asbestos.

The article focuses on China's plan to launch a national emissions trading scheme (ETS). Topics discussed include the possibility that China will seek to link its ETS with other ETS schemes, the various forms of linkage and their different effects, and signs that China and the European Union are very likely to cooperate in the field of emissions trading.

Constrained by the dual mission of supporting industrial growth and reducing emissions, China׳s traditional, emission reduction-oriented environmental policies unavoidably face a dilemma. This study adopts the GML index to calculate China׳s industrial productivity by considering environmental factors. In addition, based on the assumption of industry heterogeneity, the author examines the non-linear relationship between China׳s environmental regulation and environmental productivity and calculated the optimal regulation environment for industries. According to this study, when impact of undesirable outputs (pollutant emissions) is considered, environmental regulation and environmental productivity are positively correlated, which to some degree validates the Porter Hypothesis. At present, environmental regulation has significant positive effects on clean production industries but shows a lag effect on pollution-intensive industries. The degree of environmental regulation and environmental productivity show an “inverted U”-shaped relation and display three thresholds. It should be noted, however, that the relationship between regulation and productivity may vary across industries. These findings have clear policy implications: rather than continually increasing the level of environmental regulation, the government should establish standards for individual industries that emphasize flexibility. [ABSTRACT FROM AUTHOR]

The intention of this paper is to (i) introduce a multi-regional dynamic emissions trading model and (ii) examine the potential impact of an emissions trading scheme (ETS) on the long-term evolution of energy technologies from national and regional perspectives in China. The establishment of this model is a salutary attempt to Sinicize the global integrated assessment model that combines economy, energy, and environment systems. The simulation results indicate that: (1) for majority of regions, ETS is more effective in cutting CO2 emissions than a harmonized carbon tax (HCT), but this might not be true for the entire country, which means that these two options have little difference in overall carbon reduction; (2) carbon tax policy is a more cost-effective option in curbing CO2 with respect to ETS in the long run; (3) neither ETS nor pure carbon tax provide enough incentives for the breakthrough of carbon-free energy technologies, which illustrates that matching with some other support policies, such as subsidies and R&D investment, is essential to extend the niche market; and (4) In the context of ETS, the diffusion of non-fossil technologies in regions that act as sellers performs much better than this diffusion in the buyer regions. [ABSTRACT FROM AUTHOR]

One of the stated aims of the EU ETS is to promote investment in clean, low-carbon technologies. Against this background, this paper aims to provide an original analysis of how the EU ETS has impacted on corporate investment decisions and whether it does so at a level adequate to reach the long-term political targets required for a decarbonization of the European economy. In this paper, the authors provide empirical evidence for this question by analyzing corporate reactions to the EU ETS for Belgian EU ETS sites. Despite the fact that most managers use prices that are much higher than spot prices in their appraisal reports, expected prices are still far too low to mobilize additional financing for new investments in lower carbon modes of production. [ABSTRACT FROM AUTHOR]

To investigate the ‘promiscuous history’ of the efficiency of emissions trading markets, I draw from Actor Network Theory and specifically the work of Bruno Latour, highlighting how the commonly made claim to efficiency was constructed as a ‘fact’. I trace the processes, beginning in the early 1970s, that constructed first the inefficiency of command-and-control regulation through the distinction between the means and the ends of regulation, and the conversion of the specific 1970 Clean Air Act regulations into the archetypal form of command-and-control. Alongside this, the efficiency of emissions trading was constructed through the provision of empirical, modeling evidence and the re-construction of the Environmental Protection Agency's early Emissions Trading System as an ‘ad hoc’ implementation of ‘pure’ economic theory. In this way specific regulatory forms were translated into a seemingly universal economic narrative, and emissions trading was stabilised as a regulatory technology applicable to multiple environmental pollutants. [ABSTRACT FROM PUBLISHER]

Cap-and-trade schemes are of tremendous interest in the current trends of climate law and policy. Taking into account Phase I and Phase II, the EU ETS directive has been reformed in 2009 and will establish a totally new Phase III starting from 2013 until 2020. The new system will propose a broader material scope, new forms of allocation of allowances, due attention to benchmark free allowances and careful measures to address carbon leakage. Furthermore, the directive sets new forms of market oversight and opens up for stronger relations with other compatible systems. On the other side of the Atlantic, the lack of a US federal cap-and-trade system has not prevented the creation of sub-national or regional cap-and-trade schemes. The Californian cap-and-trade final regulation represents the most interesting and most advanced scheme in the US. It has been eventually adopted in fall 2011 and is designed to reduce GHG emissions by 2020 through a market-based compliance system. The two systems show improvements to earlier forms of emissions trading, but still raise questions on the actual compatibility between each other. [ABSTRACT FROM AUTHOR]

In this article, I analyze a difficult and surprisingly under-examined issue about how to reduce greenhouse gas emissions most effectively at the lowest cost. If policy-makers commit to using cap-and-trade as a central regulatory mechanism--the dominant policy choice to date--to what extent should they also adopt regulatory programs that contain more traditional direct regulation? Cap-and-trade is by definition designed to harness market forces to allow polluters to make choices about whether and how they will reduce their own emissions or trade for a right to emit more while another polluter cuts emissions more dramatically. Complementary policies, by contrast, designate in advance how greenhouse gases ("GHGs") must be reduced and the sources from which these reductions must come. While complementary policies can effectively reduce emissions, they also constrain the market options available under cap-and-trade by limiting the choices emitters have about how to reduce their emissions. That constraint can lead to higher compliance costs. Though policymakers may enact complementary policies for reasons other than greenhouse gas emissions reduction, if the goal is solely to reduce greenhouse gases most cost-effectively, cap-and-trade alone is a better choice in a well-functioning market. However, if systematic market failures prevent emitters subject to a cap-and-trade system from choosing the lowest cost compliance options, then, from a climate policy perspective, complementary policies to correct the market failure make sense. Energy efficiency measures are one example of a complementary policy that corrects such a market failure. If no market failure exists, policymakers should recognize the trade-off inherent in limiting the market mechanisms cap-and-trade is designed to promote and evaluate whether ancillary benefits justify the reduction in market flexibility and the potentially higher costs. [ABSTRACT FROM AUTHOR]

This paper examines the multi-level governance of climate change with a particular focus on the European Union (EU). It examines the relationship between the EU and its Member States (the federalism dimension), particularly in relation to emissions trading, and the relationship between the EU and the rest of the world (the global dimension). The paper argues that we are witnessing a shift in the EU's climate leadership style; a shift that is characterized by an increasing willingness of the EU to use its economic power in a bid to promote effective climate governance elsewhere. We see this in relation to different sectors including aviation, biofuels, energy-intensive products and as a result of increasing EU regulation of carbon offsets in its emissions trading scheme. [ABSTRACT FROM AUTHOR]

Whether tradable permits are appropriate for use in transition and developing economies—given special social and cultural circumstances, such as the lack of institutions and lack of expertise with market-based policies—is much debated. We conducted interviews and surveyed a sample of firms subject to emissions trading programs in Santiago, Chile, one of the first cities outside the OECD that has implemented such trading. The information gathered allows us to study what factors affect the performance of the trading programs in practice and the challenges and advantages of applying tradable permits in less developed countries. [Copyright &y& Elsevier]

This article considers the integrity of the emerging emissions allowance markets for greenhouse gases (GHG) under the international emissions trading system created by the Kyoto Protocol and the parallel European Union Emissions Trading Scheme. In particular, we suggest that accepted definitions of emissions baselines, initial allocation of emission credits, verification of “additionality” for GHG reduction beyond what would have occurred without trading, assuring permanence for offset-generating projects, preventing leakage of emissions-generating activities from protected project areas, monitoring, and reporting requirements are problematic. As with previous reforms that also rely on market allocation and expansion of private property rights, GHG trading deflects change in the social relations of production required for more sustainable production while commodifying access to the atmosphere and nature's ability to recycle carbon. Alternatives to this modern-day GHG indulgence system are considered, especially an upstream carbon tax, designed to force change in energy procurement and use. Although we found that most of the conditions required for the efficient operation of the international GHG markets are not being met thus far, further changes in the trading systems are being made. [ABSTRACT FROM AUTHOR]

Emissions trading has created new forms of exchangeable property which become commodities when traded in markets designed to reduce greenhouse-gas emissions and mitigate climate change. This paper analyzes a set of social processes which influence who benefits from reductions in emissions generated by primary production from forest ecosystems. Informed by commodification literature, and property and access theory, we suggest that farmers and rural communities cannot derive full benefits from carbon sequestration because they lack key structural and relational mechanisms, such as capital, knowledge, expertise, technology, and, in some cases, even labour. We illustrate this argument by examining three ongoing carbon-forestry projects in China, Ecuador, and Mexico and we highlight its implications for future forestry mitigation projects and programmes. [ABSTRACT FROM AUTHOR]

The United States faces a potential turning point in the relationship between state and federal regulation of environmental issues. With the election of President Barack Obama, who has signaled a commitment to taking action in the area of carbon emissions regulation, the national government may step into an arena where the states are already playing, setting up a federalism debate to determine the better actor to enact meaningful and efficient environmental protection. Effectiveness in this area depends on the balance between quick enactment to prevent increased emissions (and further harm) and the comprehensiveness required to address this national and global issue. This Comment examines the Regional Greenhouse Gas Initiative to illustrate how the use of a seldom-examined constitutional tool-consent under the Compact Clause-could enable states to form efficient and effective regional regulatory schemes that could be meaningful units within the greater system of federalism. [ABSTRACT FROM AUTHOR]

The amendment of the EU ETS agreed on in December 2008 will see covered entities face new challenges. Due to a more stringent overall reduction target, the emissions trading regime will have a larger influence on the business sector. The basic question "who can get, under what conditions, tradable allowances" will thus be even more relevant than in the initial regime. This paper sheds light on possible uncertainties that industries might face following the new allocation provisions. Both regulatory uncertainty and "business uncertainty" regarding the price to be paid for allowances serve as starting points. By nature, business uncertainty is much more prevalent in the event of auctioning compared to free allocation, which seems to encompass larger regulatory uncertainty, especially for the possible exposed sectors. Moreover, the article highlights the difficulty of designing allocation mechanisms, and some of the complexities that might arise in the course of a trading period. Of particular note is that it cannot be excluded that the executive regulations for auctioning and free allocation need to be amended in order to ensure the intended outcome of the scheme. In this sense, the learning by doing period has not ended at all. The article concludes that, from a governance perspective, any legislator should incorporate the question of regulatory and business uncertainty when introducing emissions trading schemes or major amendments to such schemes. In fact, environmental effectiveness could have also been achieved with the current emissions trading scheme of the Commission had conducted a sufficiently strict inspection of the national allocation plans. For protecting the climate and for ensuring an emission reduction of 20 percent in 2020, the fundamental review was not, in fact, a strict necessity. The trade-off of developing a suitable framework for a level playing field and avoiding windfalls in the context of emissions trading is that industries need to face new regulatory approaches, for which it is not yet completely clear how they will affect their business activities. [ABSTRACT FROM AUTHOR]

A framework was devised for policy-makers to assess direct bilateral cap-and-trade linkages. A systematic analysis of the economic, political and regulatory implications indicates potential benefits along with a number of potentially negative side effects. Theoretically, economic benefits are expected from quasi-static short-term and dynamic efficiency gains. However, a careful review of these arguments indicates that, due to the presence of market distortions or terms-of-trade effects, international emissions trading may not be welfare-enhancing for all countries. Political benefits are derived from the reinforced commitment to international climate policy and the elimination of competitiveness concerns among linking partners, but this must be weighed against the possible incentive to adjust national caps in anticipation of linking. Regulatory disadvantages may arise from the linked system's inconsistency with original domestic policy objectives, and from the partial de facto cession of discretionary control over the domestic emissions trading system. Finally, as an illustration, a link between the EU ETS and a prospective US trading system is assessed, and the major trade-offs identified. [ABSTRACT FROM AUTHOR]

We examine the impact of policy choices, including a carbon tax, on the optimal allocation of power across different generation sources and on future investments in generating facilities. The main focus is on the Alberta power grid, as it is heavily dependent on fossil fuels and has only limited ties to other power grids, although the model could be extended to larger (and even multiple) grids. The results indicate that, as wind penetrates the extant generating mix characterizing the grid, cost savings and emission reductions do not decline linearly but at a decreasing rate. However, if flexibility is allowed, then, as the carbon tax increases to C$40/tCO2 or above, existing coal plants start to be replaced by newly constructed wind farms and natural gas plants. If coal can be completely eliminated from the energy mix and replaced by natural gas and wind, substantial savings of 31.03 Mt CO2 (58% of total emissions) can result. However, this only occurs for carbon taxes of over C$170/tCO2. The associated high capital costs of new generating facilities may thus not be an ideal use of funds for addressing climate change. [ABSTRACT FROM AUTHOR]

Abstract: The energy demand of the hotel sector of an Italian region is here utilized for hierarchizing, by means of an empirical method, efficient measures devoted to energy saving and reduction of CO2 emissions. Due to the large number of consumers present in the selected territorial area and the lack in detailed data, the energy demand assessment is here carried out by the analysis of a sample of representative consumers. A short set of indexes, referring to energy and environmental performances, are defined and calculated for different clusters of hotels, grouped on the basis of site characteristics, opening periods, number of beds, and building age. Such indexes are utilized to establish lists of actions with assigned priorities stemming from energy, environmental and economics issues. Energy planners and decision makers can easily use this approach for defining, implementing and monitoring energy efficiency as well as sustainability policies in the tourist sector of a given geographical area, starting from a limited set of data. The method has been proposed by authors within the assessment of the Sicilian Energy Masterplan. [Copyright &y& Elsevier]

The appropriateness and importance of market-based environmental governance systems vary according to different cases. Although so-called 'market trading' regimes can be useful in some circumstances, a false belief in the inevitability of their cost-effectiveness compared with so-called 'command and control' systems has allowed policy distortions to occur. So-called 'command and control' policies are being underemphasised, despite the fact that they may achieve reductions in carbon emissions that are cheaper than those likely to be achieved through emissions (or 'certificate') trading regimes. I address theoretical arguments which I then place in context with analysis of some features of the British Renewables Obligation and the European Union Emissions Trading Scheme. [ABSTRACT FROM AUTHOR]

In this article, the author addresses the issues facing California with regard to its regional cap-and-trade market linkage. The author highlights the benefits and costs of cap-and-trade linkage. On the other hand, she offers recommendations to protect California from damaging linkage without violating the Dormant Commerce Clause.

The allocation of CO2 emissions to specific sources is a major policy issue for international aviation, especially for determining allocations for emissions trading schemes. This paper addresses the problem by recommending a possible methodology to allocate emissions to specific sources using detailed air traffic data. The basis for the calculations is an air traffic sample for one full-day of traffic from the UK. In order to analyse aircraft fuel burn use and hence CO2 emissions, the Reorganized Air Traffic Control Mathematical Simulator (RAMS Plus) and the Advanced Emission Model (AEM III) are used. The results from these detailed simulations are compared with two of the most widely-used aviation CO2 emission estimates to have been made for the UK: the SERAS study and NETCEN estimate. Their estimates for the year 2000 are 26.1 and 31.4 Mt, respectively. In addition, the most recent NETCEN estimate for the year 2003 is 34.1 Mt of CO2. Our estimate of total aviation CO2 emissions, using detailed simulations and real air traffic data, is 34.7 Mt for the year 2004. In addition, emission estimates are compared with two global aviation emission inventories: AERO2K and SAGE. Contributions of the highest-emitting flights and aircraft types are identified. International departures dominate; 6% of flights account for 50% of total emissions. The largest aircraft emit the most per flight-km, although not per passenger-km. Different methodologies and their implications are also discussed. [ABSTRACT FROM AUTHOR]

Abstract: The substitution of biomass for fossil fuels in energy consumption is a measure to mitigate global warming, as well as having other advantages. Political action plans for increased use exist at both European and national levels. This paper briefly reviews the contents of recommendations, guidelines, and other synthesis publications on sustainable use of forest biomass for energy. Topics are listed and an overview of advantages, disadvantages, and trade-offs between them is given, from the viewpoint of society in general and the forestry and energy sectors in particular. For the Nordic and Baltic countries, the paper also identifies the extent to which wood for energy is included in forest legislation and forest certification standards under the “Programme for the Endorsement of Forest Certification” (PEFC) and the “Forest Stewardship Council” (FSC) schemes. Energy and forest policies at EU and national levels, and European PEFC forest standards are analysed. With respect to energy policies, the utilisation of wood for energy is generally supported in forest policies, but forest legislation is seldom used as a direct tool to encourage the utilisation of wood for energy. Regulations sometimes restrict use for environmental reasons. Forest certification standards include indicators directly related to the utilisation of wood for energy under several criteria, with most occurrences found under environmental criteria. Roles and problems in relation to policy, legislation, certification standards, recommendations and guidelines, and science are discussed. [Copyright &y& Elsevier]

Abstract: Solid desiccant air-conditioning systems present a promising solution, in terms of performance level and environmental protection, pointing out their potential to be coupled with thermal solar or waste heat energy source. Nevertheless, these systems are characterized by constraints to the load they can satisfy, through the trade-off between the dehumidification cooling capacity and the latent load of the conditioned space. On that level, one has to note that, for steady environmental conditions, the conditioned space does not present unique value of load, but range of load, corresponding to an array of acceptable temperature and (usually relative) humidity values. In this work a methodology is proposed for the definition of the system''s achievable working range under specific set of space (comfort) requirements. Through this approach, the systems present greater potential for covering the space requirements, thus presenting more possibilities on a design basis, and more flexible control strategies, as well. The proposed methodology is presented and discussed through the case study of a solar desiccant air-conditioning system coupled to a typical residential building. [Copyright &y& Elsevier]

Abstract: In 1999 the National Air Quality and Telecommuting Act established pilot telecommuting programs (ecommute) in five major US metropolitan areas. The major goal of the ecommute program was to examine whether a particular type of economic incentive, tradable emissions credits from telecommuting, represents a viable strategy for reducing vehicle miles traveled and improving air quality. A context is established for evaluating whether the envisioned trading scheme represents a feasible approach to reducing mobile source emissions and promoting telecommuting and a review of the limited experience with mobile source emissions trading programs is provided. Using two-and-one-half years of data collected in the ecommute program, telecommuting frequency, mode choice, and emissions reductions are examined. It is found that from a regulatory perspective, the most substantial drawback to such a program is its questionable environmental integrity, resulting from difficulties in designing sufficiently rigorous quantification protocols to accurately measure the emissions reductions from telecommuting. Such a program is not likely to be cost-effective because the emissions reductions from a single telecommuter are very small. [Copyright &y& Elsevier]

The article discusses the legal frameworks of emissions trading in Europe. The European Union Emissions Trading Scheme could be described as the largest experiment to date with the creation of regulatory property. 2005 saw the launch of a trading market for greenhouse gas emission allowances as a primary pillar in the European Community strategy to lessen global warming. The main feature of the scheme lies in the establishment of a regulatory framework for trade in greenhouse gas allowances with detailed provisions on the administrative arrangements and procedures.

The climate change issue faces a big challenge, perhaps the biggest challenge of all ç politics. Pakistan has taken many noticeable steps in relation to climate change: (1) it is the only country in which the Prime Minister is heading an inter-ministerial task force on climate change, (2) it is the first developing country to establish a specialized, self-financed scientific centre to research the impact of climate change, and (3) it is the lead country to earmark budgetary funds for a national carbon sequestration programme. Pakistan, together with many developing countries, has much to offer the climate change issues. The author proposes five approaches to build consensus among climate policy negotiators: (1) reinforcing the polluter pays principle and ‘common but differentiated responsibility’, (2) active partnership by developing countries, (3) recognizing the voluntary actions taken by developing countries, (4) reinforcing the issue of adaptation, and (5) considering the option of equal per capita entitlements. [ABSTRACT FROM AUTHOR]

Slovenia is required to reduce its greenhouse gas emissions to an average of 8% below the base year 1986 in the period 2008-2012, due to the ratification of the Kyoto Protocol in 2002. It was the first of the transition countries to implement a CO2 tax in 1997. At the beginning of 2005, Slovenia joined other EU Member States by implementing the Emissions Trading Scheme. In contrast with other new EU Member States, Slovenia will be a net buyer of allowances. Therefore future movements on the emissions market will play an important role in the compliance costs of achieving the Kyoto target. The main purpose of this article is to present the establishment and characteristics of the first national allocation plan (NAP1) and to describe the main elements of the second national allocation plan (NAP2) for Slovenia within the EU Emissions Trading Scheme, the expected movements on the emissions allowances market in Slovenia, the expected compliance cost of achieving the Kyoto target and to present the main characteristics and efficiency of the CO2 tax in Slovenia. [ABSTRACT FROM AUTHOR]

Which actors in the aviation sector ought to be obliged to participate in emissions trading? The European Commission opted for the aircraft operator in their proposal for a Directive. A major drawback is that non-EU aircraft operators might legally challenge their inclusion in this scheme and, if the challenge was successful, discrimination between EU and non- EU operators would undermine the scheme. An alternative would be to place an obligation on fuel suppliers to prove possession of allowances, thus avoiding discrimination. However, emissions trading can be evaded to some extent by increased refuelling beyond EU boundaries (tankering).Typical city pairs were used to analyse the conditions under which such tankering strategies are economically attractive. The analysis shows that the attractiveness of tankering depends substantially on the relationship between fuel prices and allowance prices. If the price relation as of March 2006 is taken as a basis, tankering would be attractive within a radius of up to 4,000 km especially on southbound and eastward routes. Emissions trading could, under unfavourable conditions, be evaded for up to 20% of the total fuel consumption in aviation with the help of tankering. Although this value is only a theoretical upper limit, more than 10% of fuel consumption could be affected by tankering. [ABSTRACT FROM AUTHOR]

Although the aviation sector is one of the fastest growing climate change contributors in Europe, it is not covered by the European Union's Emissions Trading Scheme (EU-ETS). Therefore the European Commission suggested including aviation in the EU-ETS and announced the aim of putting forward a legislative proposal by the end of 2006. In this article the legal aspects, which have to be considered for an successful inclusion of aviation into the EU-ETS, will be reviewed. This includes the legal framework for the inclusion of aviation into the EU-ETS which consists of the United Nations Framework Convention on Climate Change, the Kyoto Protocol and the Community Law. Important legal aspects are also possible legal obstacles like the existing traffic rights in the different Member States, bilateral air transport agreements like the Open Skies agreements and the Chicago Convention. Another crucial legal point of the inclusion of aviation into the EU-ETS is the interplay of the EU-ETS and the Kyoto Protocol. Furthermore the legal aspects regarding the scope and certain design points of emission trading scheme will be reviewed. This includes the obliged parties, the allocation and certain points of the administration. [ABSTRACT FROM AUTHOR]

Abstract: In this laboratory experiment on emissions trading, subjects face exogenous, random emissions shocks after making production and emission control plans. In some sessions subjects can bank their unused permits for future use. After a reconciliation-trading period following the shock realization, subjects report their emissions to the regulatory authority and are placed in different inspection groups depending on their compliance history. We identify important interactions between banking, compliance and enforcement. Banking smoothes out the price variability arising from imperfect emissions control. Price stability comes at a cost, however, since noncompliance and emissions are significantly greater when banking is allowed. [Copyright &y& Elsevier]

This paper offers an appreciation of the complex detail of the European Union's Emissions Trading Scheme and the complications encountered in linking such a scheme across 25 Member States before examining the scheme, with a view to ascertaining its potential business consequences and flirt her developments to the scheme which may occur in the months and years ahead. The author concludes that it is safe to assume that the scheme is here to stay and that it will make a valuable contribution to cutting CO2 emissions and meeting the EU'S Kyoto obligations. [ABSTRACT FROM AUTHOR]

This article provides a legal analysis of some of the key issues that arise in examining the system for allocating emissions allowances under the EU's emissions trading scheme directive (EU ETS). There is a strong series of arguments in support of the view that the free allocation of allowances under the various national allocation plans (NAPs) involves an element of State aid, which has neither been formally notified to, nor cleared by, the Commission under the EC Treaty. Even if it is found properly to have been notified, there are serious doubts as to whether the extent of aid granted satisfies the proportionality principle. As a result, the operation of the EU ETS may be subject to some legal uncertainty with regard to possible legal challenges to the current allocation of allowances. Going forward, proposals to amend the operation of the EU ETS must take into account similar State aid considerations (particularly proportionality) and the experience gained from the working of the EU ETS in phase I. The structural outline of a possible legislative package has been suggested, which could achieve the safeguarding of commercial and legal certainty under the current allocation regime, while at the same time providing a basis for amendment of the allocation mechanism under the EU ETS for phase II and beyond. [ABSTRACT FROM AUTHOR]

The objective of this paper is to assess the likely allocation effects of the current climate protection strategy as it is laid out in the National Allocation Plans (NAPs) for the European Emissions Trading Scheme (ETS). The multi-regional, multi-sectoral CGE-model DART is used to simulate the effects of the current policies in the year 2012 when the Kyoto targets need to be met. Different scenarios are simulated in order to highlight the effects of the grandfathering of permits to energy-intensive installations, the use of the project-based mechanisms (CDM and JI), and the restriction imposed by the supplementarity criterion. [ABSTRACT FROM AUTHOR]

The article presents legislative bills related to environmental laws in Great Britain from April 2005 to September 2005. The Citi Aviation Bill had its second reading on June 27, 2005. The Management of Energy in Buildings Bill is an act aimed at promoting renewable and sustainable energy through the management of energy efficiency in buildings. The Climate Change Bill, otherwise known as Bill No. 43 aims to combat climate change by setting legally binding targets to reduce carbon dioxide emissions.

This Article discusses the ideal design features of a domestic greenhouse gas (GHG) emissions trading program that are critical to the cost-effective implementation of future U.S. climate change policy. The discussion of a properly designed domestic GHG trading program is coupled with an analysis of both the European Union's Carbon Dioxide (CO2) Emissions Trading Directive and the Climate Stewardship Act of 2003, proposed by Senators John McCain and Joseph Lieberman. The Article begins with the argument that climate change policy does not necessarily entail huge compliance costs. Rather, implementation of well-designed domestic climate change policy will have the effect of aligning energy development and environmental protection goals while minimizing its short-term economic impacts. By encouraging reduced fossil fuel usage, climate change policy has the potential to integrate sustainability concerns into all levels of economic decision making, thereby producing ancillary societal benefits such as improvements in existing air quality and public health. In light of the large number of pollution sources and the relative ease in measuring CO2 emissions, this Article argues that emissions trading or a carbon tax system should be an essential part of any successful climate stabilization strategy. However, it is unlikely that a carbon tax will be politically acceptable in the United States despite the tax's theoretical appeal. Based on prior experiments with emissions trading programs in the United States, the Article discusses the ideal design features of domestic GHG emissions trading. These features include early reduction credits, banking and borrowing, opt-in, offset trading, international emissions trading, and effective monitoring and verification. During the course of discussion, the Article examines the program elements of the European Union's CO2 Emissions Trading Directive and the Climate Stewardship Act. Lastly, this Article briefly introduces several studies that have estimated the economic effects of the Climate Stewardship Act. The Article concludes that domestic climate change policy can be implemented in a cost-effective manner and stresses the need for the United States to take domestic action on climate change. [ABSTRACT FROM AUTHOR]

In this paper we explore whether efficiency gains obtained by developing countries participation in emission trading could offset the economic risks that would be incurred by taking on binding commitments when future emissions are uncertain. Such commitments would allow developing countries to participate in emissions trading, which has significantly lower transaction costs than the present Clean Development Mechanism (CDM). However, because future emissions cannot be known, commitments can become more costly for the developing countries than expected. Using a dynamic computable general equilibrium model, we analyse whether the efficiency gains obtained by participating in emissions trading can offset this risk. We find that the efficiency gains that can be obtained by developing countries might not be very large compared to the risks they incur. Developing countries might therefore have good reasons not to embrace binding commitments in order to participate in "cap and trade" emissions trading. [ABSTRACT FROM AUTHOR]

The paper reviews the environmental law in Germany. Germany implemented the European Emissions Trading Scheme relating to a mechanism for the trade of greenhouse gas emissions in the European Community into national law. On July 15, 2004, the Draft of the Ordinance concerning solvent-based paints and varnish has been approved. The Renewable Energy Sources Act entered into force on August 1, 2004. On April 1, 2004, the Federal Administrative Court decided a crossing over the river Mosel between Belgium and Germany. The German government decided the Draft of an Amendment to the Packaging Ordinance on November 3, 2004. On July 1, 2004, the government agreed to the draft of an Act on Improving Preventive Flood Protection.

The EU is expected to be one of the buyers of emission rights on the international carbon market. However, various policymakers, also in the EU, fear that "hot air" will be sold under the Kyoto Protocol, for instance by the Russian Federation. Based on an institutional law and economics framework, we have tried to find out whether hot air trading should be seen as an environmental problem or not. Two distinctions are crucial: one between a formal and informal interpretation of environmental effectiveness and one between an ex ante and ex post perspective of hot air trading. We conclude that hot air trading only disturbs effectiveness in an informal (or ethical) interpretation. Moreover, the view that hot air trading is undesirable appears to assume an ex post perspective on the negotiated emission targets. Finally, there is evidence that an increasing number of policymakers now perceives hot air trading as de facto unavoidable. We find that these perceptions of hot air trading have shifted, as a result of external and internal pressures, from an ethical and ex post oriented outlook to a more formal and ex ante oriented one. [ABSTRACT FROM AUTHOR]

The EU emissions trading scheme has been characterized as one of the most far reaching and radical environmental policies for many years, and "the new grand policy experiment." Given the EU's earlier resistance to this market-based instrument with no international track record and with US origins, the EU decision- making process, which took less than two years, can be characterized as a puzzlingly ultra-quick political "pregnancy." In order to understand this, it is necessary to take three explanatory perspectives--and the interaction between them--into account. First, the emissions trading issue was more mature within the EU system than immediately apparent, given that emissions projections were worrying and no effective common climate policies had been adopted. Second, the Commission acted as a strong and clever policy entrepreneur, dealing with other basically positive EU bodies. Third, when the US pulled out of the Kyoto process in March 2001, it provided a window of opportunity for the EU to take the reins of global policy leadership. [ABSTRACT FROM AUTHOR]

Discusses the importance of communicating the urgency and challenge of global climate change. Trend for Americans to be preoccupied with many issues other than climate change; Findings by the Intergovernmental Panel on Climate Change regarding the potential impacts and emissions reductions needed in order to avoid drastic consequences; Consideration of how many scientists have issued publicized warnings to alert the public of the need for action; Hurdles encountered by the U.S. public in a national dialogue on climate change; Impact of the release of emissions of heat-trapping gases and subsequent impacts on the climate; Ways to increase the persuasiveness of the climate change message without appealing to fear. INSETS: FLIPPING THE "SWITCH ON ABRUPT CLIMATE CHANGE";UNDERMING URGENCY: DEALING MORE EFFECTIVELY WITH ALARMISTS.

The introduction of a European emission trading scheme is a major step in handling the Kyoto Protocol's demand for a reduction in greenhouse gas emissions. The EU concept is based on grandfathering. A linking directive including the use of the flexible mechanisms of the Kyoto Protocol is expected to be sisued. Thereby the cap will not be tight and there will be a risk of trade in hot air. Having established the background the author looks at the concept of quotas; sets out the scope of the Emission Trading Directive; examines national quotas; considers allocation of quotas and pooling, queries the issue of allocation as state aid; ponders other treaty infringements; suggests the position in relation to tradability; describes the likely position in relation to periodical split, surrendering and monitoring; and outlines joint implementation and the clean development mechanism, before making some concluding comments. [ABSTRACT FROM AUTHOR]

Discusses how Europe will launch an updated emissions trading program for greenhouse gases in 2005 which is much larger and more complex than the U.S. effort. Role of market-based policies in environmental regulation and in the formation of future European and international climate change policies; Consideration of the plans for the European Union Emissions Trading System (EU ETS) to address global climate change implement a more consistent trading program among nations; Innovations regarding provisions that provide flexibility in monitoring and compliance; Difficulty associated with the preparation and review of National Allocation Plans; Use of auctions in the distribution of tradable emissions allowances in the U.S. INSETS: EUROPEAN UNION TERMINOLOGY;KEY FEATURES OF EU ETS;EFFECTIVE EMISSIONS TRADING PROGRAMS: A VIEW FROM THE ECONOMICS;SUMMARY OF U.S. TRADING PROGRAMS

On 9 December 2002 the (Environment) Council of the European Union unanimously agreed on a common position on a Commission's proposal for a Directive establishing a scheme for greenhouse gas emissions allowance trading. This follows the idea that a common European emissions trading system should be preferred above a collection of national emissions trading systems. The European framework for emissions trading needs to he filled in by the Member States. One of their main tasks will be to allocate the greenhouse gas allowances according to a National Allocation Plan. The use of new regulatory instruments as emissions trading will raise new legal questions, which not always can be foreseen before the real application of the instrument in practice. It does not seem to he that the relevant institutions in the European Community already have a clear insight in all the necessary provisions for a well-functioning and just emissions trading, scheme. Especially the allocation of the tradable emissions rights can be questioned. With the present criteria, the allocation of the transferable rights will likely be a complicated and probably time-consuming task for the national governments. The European politicians seem to be willing, to take this risk with emissions trading, in order to build experience [ABSTRACT FROM AUTHOR]