In order to live up
to its
Kyoto Protocol obligations and achieve an
overall reduction of greenhouse gas emissions by 8% the EU created
in 2005 a common emission trading system, officially called the
European Union Greenhouse Gas Emission Trading Scheme (EU
ETS).
Until 2013 the system will be divided into two trading periods.
2005-2007 was a trial period, and the current 2008-2012 period
builds on the experience of this. The system has already improved
its effectiveness.
As part of the EU's
climate and energy package the character of
the emission trading system will change starting in 2013. The new
emission trading system will increasingly rely on a common EU
framework for the benefit of consumers and businesses.