The ETS Paradox
Emissions Trading for NOx and SO2 in the European Union
Industrial emissions of NOx and SO2 in the EU have dropped substantially since the mid 1990s. Against this background, the European Commission is investigating the idea of introducing an Emissions Trading Scheme (ETS) for NOx and SO2 that could potentially replace the current IPPC Directive.
Our study suggests that the window of opportunity for introduction of emissions trading or NOx and SO2 is rather small and therefore risky.