Can Europe’s ex-communist states profit from the trade in greenhouse gas?
As part of the Kyoto Protocol, industrialised countries agreed to reduce their greenhouse gas emissions by 5 per cent of 1990 levels between 2008 and 2012. As industrial activity in Europe’s ex-communist countries has declined since 1990, they will find it easier to reduce pollution levels than other industrialised countries. A trading system is being developed that will enable countries to ‘buy’ pollution quotas from countries that pollute less. However, the countries with most to ‘sell’ under this system are often those with the most risky business environments. Research from the European Bank for Reconstruction and Development (EBRD) examines the Joint Implementation Trading Scheme, due to start in 2008. This will facilitate trading in pollution quotas and countries with high pollution levels, such as the European Union (EU) countries, will find it easier to meet their targets. They will be able to ‘buy’ pollution quotas from countries that are under their targets. They can also red
