Multi-level governance in EU climate law

Multi-level governance comprises four levels of governance: industry, national, EU and international. Climate policy requires action primarily by (industries and citizens within) EU Member States, although sometimes local governments take the lead. Industries exert influence and experience the effects of EU climate law at all four levels of governance. Multi-level governance, which is to a large extent shaped by general EU law, is (overly) complicated as EU Member States resist a clear governance structure in which they are legally bound by individual targets. Solidarity needs to be enforced because not all Member States and non-EU countries may share the same commitment to mitigating greenhouse gas emissions. Cost-effectiveness explicitly involves regulated competition at the level of Member States and industries. Cost-effectiveness is attained by the use of market mechanisms, such as the EU ETS, which require supervision by a market regulator.