Dóra Fazekas Carbon Market Implications for new EU - UniCredit ...

Figure 9. GHG emissions in the EU-27, the EU-15 and in the EU-12
Index 100 = 1990 levels. Source: EEA, 2007
All Western MS – with four exceptions – have emitted more in 2005 than their base year emissions.
EU15 2005 emissions are almost the same as in 1990 (2% decrease). On the contrary, new MS emit
less – without exception – in 2005, hence overall, EU27 emissions are 11% less than in the base
year. This clear difference explains why EU15 and EU12 are discussed separately in the following.
3.1. Emissions Trading in the old EU Member States
Previous studies have assessed the efficiency and competitiveness aspects of the EU ETS on the
western, industrialized countries of the EU15 (Austria, Belgium, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United
Kingdom).
A growing area of research is concerned with the current performance of the EU ETS in achieving
its main aim of cost-efficient greenhouse gas abatement. The current design of the EU ETS has
been heavily criticized by the scientific community for its lack of environmental effectiveness and
economic efficiency (Oberndorfer and Rennings, 2007). Consequently, only a few countries are
actually on a path to achieve their Kyoto targets (see figure 10). Only five countries – Sweden, UK,
Germany, France and Netherlands – are below their BSA target, the other ten exceed their limit.
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