EU Emissions Market Update.

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.