EU Floats Emissions Trading Ideas

March 7, 2000--Reuters reports that the European Commission is releasing for comment a report on alternative designs of a greenhouse gas emission-trading program among the 15 EU members.

The trading system would allow emission sources that are unable to meet greenhouse gas emission limits at low cost to purchase credits from sources that reduce their emissions below target levels and are left with surplus credits. The proposal, contained in a Commission green sheet, provides for a comment period until September 2000.

An emissions trading system is one of three "flexible mechanisms" outlined by the 1997 Kyoto Protocol and is designed to lower the cost of cutting carbon dioxide and other greenhouse gases. The Commission’s proposal would take affect in 2005, three years in advance of the implementation of the Kyoto Protocol.