Weighing Up the Performance

Policy makers have found emissions trading a powerful and attractive concept. But there is now a real concern as to whether the EU trading scheme for greenhouse gases can provide the necessary incentives for securing investment in carbon reduction technology within the time-scales needed. A UK Parliamentary Committee has recently endorsed the UK Government's proposals for performance standards to drive down CO(2) emissions from power stations and other major emitters. They wish to see such standards work alongside the existing trading scheme, but this raises a number of complex legal issues, and some challenging policy issues.