Review of Lessons Learned from the European Union's Emissions Trading Scheme and the Kyoto Protocol's Clean Development Mechanism.
The U.S. Government Accountability Office GAO has released a report that explores the effects of and lessons learned from the European Union’s Emissions Trading Scheme (ETS) phase I (2005 to 2007) and the Kyoto Protocol’s Clean Development Mechanism.
According to the GAO, international policies to address climate change have largely relied on market-based programs; for example, under the European Union’s ETS phase I carbon dioxide emissions reductions were sought by setting a cap on each member state’s allowable emissions and distributing tradable allowances to covered entities, such as power plants. Beginning operation in 2002, the Kyoto Protocol’s CDM has relied on offsets, allowing certain industrialized nations to pay for emission reduction projects in developing countries—where the cost of abatement may be less expensive—in addition to reducing emissions within their borders.
This Summary Last Modified On: 4/22/2011