Completion of the EU Emissions Trading Scheme logo

This CEPS report examines recent policies related to the completion of the EU emissions trading scheme (EU ETS), with a particular focus on the pending decision to link joint implementation (JI) and the clean development mechanism (CDM) to the EU ETS–the so-called 'linking directive'. The analysis covers all the controversial issues associated with the linking directive, including the international implications as well as the business impact. The principal themes of the analysis include: timing, economic effects, project development and kick-starting the project mechanisms, ratification and entry into force of the Kyoto Protocol, project quality (including qualitative restrictions), supplementary (including quantitative restrictions), linking with other national emissions trading regimes and international implications. The report is divided into three parts. First, it sketches the arguments for and against linkage. Second, it identifies a set of conditions to be applied to achieve a stable balance between conflicting interests. Finally, it identifies priorities for action.

Publisher: Centre for European Policy Studies

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