The EU Emission Trading Directive.

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]