Greenhouse gas emissions trading in the EU

The major regulatory experiment with greenhouse gas emissions trading in the EU enables legal scholars to learn lessons regarding its design options and implementation problems. Some fundamental concerns are: (1) the issue of how to develop a fair allocation method, also in view of carbon leakage; (2) the question of how to align emissions trading with procedural rights prescribed by the Aarhus Convention; and (3) the question of how to build a reliable monitoring and enforcement approach. Case law has emerged regarding core aspects of the scheme, such as its coverage in relation to the principle of equal treatment, the inclusion of extraterritorial aviation emissions, access to trading data, and the strictness of the enforcement approach. Legal scholars have triedto understand how the economic instrument fits into the EU legal framework, but more work remains to be done, also in view of future changes to the EU ETS