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The use of emissions trading in relation to other means of reducing emissions

A Nordic comparative study

image of The use of emissions trading in relation to other means of reducing emissions

For quite a long time the Nordic countries have had explicitly formulated climate change strategies and have used various measures intended to curb emissions. Since 1 January 2005 an emissions trading scheme is in operation within the European Union, after several years of preparation. When setting climate policies the Nordic countries must take this new instrument in to account, and try and find the right balance between emissions trading and other means of reducing emissions. This study analyzes how the Nordic countries have dealt with or plan to deal with the conditions of the EU emissions trading system and the relation to other measures to curb emissions.

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The introduction of emissions trading

In this chapter we discuss the introduction of emissions trading in the Nordic countries. In 5.1, we present the main features of emissions trading in the period 2005–2007, especially how the Nordic countries have allocated emission allowances, and how the market for emissions allowances has developed so far. In 5.2, we discuss how the conditions for the EU ETS might change in the period 2008–2012.

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