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The Netherlands has ratified The Kyoto protocol and agreed to reduce its emissions of greenhouse gases. Since 1990 the goals were made less ambitious several times, but still the last goal for 2000 was not met. Economic growth surely has been one of the main culprits. The main reason economic growth results in higher CO2 emissions, is the fact that it causes higher energy consumption. So far policy measures to reduce CO2 emissions, including many energy efficiency and energy reduction measures, did not succeed in beating the effects of economic growth. The Netherlands did not manage to decouple economic growth and environmental pressure (measured here as CO2 emissions). Absolute decoupling will require an economy that has a fuel mix with a large proportion of renewables, and a much higher energy efficiency level, and probably some major technological breakthroughs. It is not very likely that current policy measures will lead to the Kyoto goals. Therefore, it is concluded that emission trading and levies would offer good, and efficient options for further reductions of CO2 equivalents. It might, however, make it difficult for The Netherlands to realise 50% of its reduction domestically, as CO2 reduction abroad will most likely be at least five times cheaper. The Ministry of VROM will have to invent new policy measures to meet the Kyoto goals. [Copyright &y& Elsevier]

The objective of this paper is first to provide empirical evidence of what can be seen as a rather remarkable change in EU’s position on the use of greenhouse gas (GHG) emissions trading (ET) in climate policy, from the role of a sceptic in the run-up to Kyoto towards more of a frontrunner. The paper argues that there is a synergistic and multilevel mix of explanatory factors for this “U-turn”, including developments at the international, EU, Member State, sub-national, and even down to the personal level. Second, the paper explores and discusses the philosophy behind the Commission’s proposal for a directive on GHG ET. Third, the paper examines the prospects for ‘success’ of a scheme for EU-wide ET using a multifaceted set of metrics. In brief, we argue that output success—the chances for having a directive adopted—hinges on the resolution of two key issues. First, whether the preliminary phase is to be mandatory or voluntary, and second, incompatibilities with domestic ET schemes. Outcome success—steering and cost-effectiveness—will in turn depend on factors like the coverage of the scheme and inclusion of project-based credits, while more long-term political implications hinges on the successful adoption and operation of the scheme.“The Proposal on emissions trading represents a major innovation for environmental policy in Europe. We are de facto creating a big new market, and we are determined to use market forces to achieve our climate objectives in the most cost-conscious way […]. The emissions trading system will be an important cornerstone in our strategy to reduce emissions in the most cost-effective way”.Environment Commissioner Margot Wallstro¨m. [Copyright &y& Elsevier]