The EU Emissions Trading system is the most extensive example of cap and trade regulation of greenhouse gases in existence to date. It be- gan in 2005 with a two year preparatory phase and is now in its first formal phase (beginning in 2008 and ending in 2012). The rules governing the scheme post 2012 have been agreed but are conditional on UN climate agreements.
The EU System offers rich evidence on what works and what doesn’t work in the design of an effective cap and trade policy. This briefing highlights the key lessons from the EU’s experi- ence for policymakers and civil society in coun- tries currently considering implementing their own emissions trading systems, and for the development of a global carbon market.