The European Unions Emissions Trading Scheme is the largest greenhouse gas emissions trading system currently operating. As it approaches the end of its second phase and moves towards Phase III, its seven years of operation offer valuable lessons. Based on survey of academic literature and recent debates, this report updates and takes a deeper look at some of the key elements of the earlier Climate Strategies study, Ten lessons from the EU ETS, and considers additional dimensions.

This paper has been preparedas part of a series in a CS project in collaboration with the Institute for Global Environmental Strategies, Japan.

The synthesis of the paper seriesprovides an overview analysis of how climate action is developing internationally, with a particular focus on the role of and lessons from emissions trading, and potential implications.