Initial attempts to create a market for carbon trading in Europe have failed to provide effective incentives for green energy. A&O’s Matt Townsend and Jennifer Wallace assess the challenges ahead
There is no shortage of targets when it comes to Europe’s climate change policy. In addition to commitments under the Kyoto Protocol, the European Union (EU) aims to achieve a 20% reduction (from 1990 levels) of greenhouse gas (GHG) emissions by 2020 (rising to 30% if other countries commit to similar levels in ongoing negotiations). By the same date, the EU wants to see 20% of all its energy come from renewable sources. In the UK, the Climate Change Act 2008 requires a 34% cut in GHG emissions by 2020, and a cut of 80% by 2050. The concern is whether the mechanisms used by European governments will work to deliver these targets.
