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12 - Legal aspects of the European Emissions Trading Scheme

Published online by Cambridge University Press:  22 September 2009

Bernd Hansjürgens
Affiliation:
Martin Luther-Universität Halle-Wittenburg, Germany
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Summary

In October 2003, the Directive “establishing a scheme for greenhouse gas emission allowance trading within the Community” came into force. After long debates, especially among economists, this represents a first step towards the implementation of a new instrument of environmental policy. Following the examples of member states such as Denmark, the Netherlands, and the United Kingdom, which had already introduced domestic trading schemes, emissions trading will form one of the instruments of European climate policy.

The Directive establishes a specific legal framework for emissions trading. This will lead to a fundamental change in perspective in the debate, from the theoretical advantages and disadvantages of this environmental policy instrument toward concrete and practical questions of implementation and application.

This chapter discusses the legal framework set up by European or national law for the Directive and its implementation in the domestic legal systems of the member states. A comprehensive survey of the legal questions is beyond the scope of this chapter. In the interest of brevity, it focuses on four major issues:

  • the leeway of European law-making bodies in relation to the national legislator;

  • compatibility of the emissions trading system with public international law, especially in the field of trade and climate protection;

  • legal limitations and guiding principles affecting the design of the emissions trading system (especially higher-ranking law); and

  • compatibility with other environmental policy instruments.

Type
Chapter
Information
Emissions Trading for Climate Policy
US and European Perspectives
, pp. 177 - 198
Publisher: Cambridge University Press
Print publication year: 2005

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