Many countries including the US, Japan, Australia,
Korea and others are now actively developing emissions trading systems. Europe
has accumulated a rich experience with designing and implementing a cap and
trade program, and policy makers elsewhere have an opportunity to look at this
experience on key issues that continue to challenge consensus. Foremost amongst
these are issues surrounding allocation, costs and competitiveness.

This report that examines the experience of the European
Unions Emission Trading System and suggests key lessons relevant to current
debates in many regions, with associated recommendations.

This paper is based on the
report of the German Marshall Fund
Climate & Energy Paper Series: Climate
Policy, Allocation and Industrial Competitiveness: Ten Insights from the EU
Emissions Trading Scheme
, prepared in July 2009 (available for download here).

The Japanese translation of the Executive Summary is also available for download (here).