Summary

The United Kingdom is one of the first countries to set up a comprehensive emissions-trading scheme. The scheme is meant to fulfil the British target under the Kyoto Protocol on reducing greenhouse gas emissions. The UK scheme will start in April 2002 and is driven by a financial incentive from the government. Legal problems arise regarding its compatibility with EC-State aid rules and a proposed Community-wide emissions trading scheme. This paper analyses the compatibility of the UK scheme with the common market and shows problems that could arise if ...