Emission Trading in the EU

Increasing volume of greenhouse gases in the atmosphere has a negative impact on the living conditions on Earth. The emissions trading instrument has been accepted to reduce amount of greenhouse gases emissions. This Bachelor thesis analyses each phases of EU Emission Trading System. The introduction of the thesis describes the impact of carbon dioxide emissions on the environment, flexible mechanisms that can reduce these emissions and the way of trading within the EU-ETS. The practical part analyses phase III of EU ETS, also includes a practical example of auction of emission allowances and the analysis of German auctions in 2014