Emissions trading of greenhouse gases in the European Union

On 23 October 2001 the European Commission submitted a proposed regulation for the creation of emissions trading in the European Union. This emissions trading would overlap already existing economic and legal instruments of climate protection. The Ifo Institute evaluated this proposal of the European Commission for the Bavarian State Ministry for Regional Development and the Environment with regard to its compatibility with existing instruments for climate protection and an alternative design for a CO2 emissions market under inclusion of the German ecotax, the power-plant approval laws, self-obligation declaration of German industry and the flexible instruments of the Kyoto Protocol.