Workshop Report on 'The Functioning of the ETS and the Flexible Mechanisms' - Brussels, 22 March 2011

In 2003, the EU established a ‘cap & trade’ emissions trading system (EU ETS) for greenhouse gas emissions of large industrial sources such as power plants and steel works. Covered installations need a tradable allowance for each tonne of their emissions. To ensure a reduction the cap is constantly reduced. The workshop discussed the basic functioning of the EU ETS and how emission reduction projects outside the EU, so called Flexible Mechanisms, can be used for compliance.