ions trading schemes would seem to be the instrument of choice in combating climate change.1 Paradoxically, given the strong initial hesitation of the European Union (EU) to support market mechanisms such as emissions trading in the run-up to the Kyoto Protocol,2 the EU’s Emissions Trading Scheme (ETS) has now emerged as the world’s front-runner. The EU has expressed the specific ambition to become the world’s benchmark in combating climate change, with the ETS at the core of its strategy. The mantra of the European Commission relies on EU