Summary
The European Emissions Trading Scheme (EU ETS) is intended to allow the EU member states reduce their CO2 emissions in the most cost effective way and in doing so fulfil their obligations under the Kyoto Protocol. The scheme covers nearly half of Europe's CO2 emissions, and is seen as a key plank of both European and member states policy to tackle climate change.
Launching the 2006 UK Climate Change Programme, Tony Blair suggested that "the scheme remains the most important mechanism for stimulating international investment in low-carbon technology."
