THE EU GREENHOUSE GAS EMISSION ALLOWANCE TRADING DIRECTIVE.

This article focuses on the EU (European Union) greenhouse gas emission allowance trading directive. The ET Directive has put in place a regulatory framework for the implementation of a compulsory greenhouse gas allowance trading scheme in all the EU Member States, from 1 January 2005 onwards, in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner. The first phase of this Directive will take place between 2005 and the end of 2007. According to the Directive, the operators of installations which undertake the activities covered by Annex I of the ET Directive must hold allowances for all emissions of the greenhouse gases listed in Annex II of that Directive.