ABSTRACT
As a part of its Climate Change Programme,2 the United Kingdom plans to be one of the first countries in the world to set up a fully functioning greenhouse gas (GHG) emissions trading scheme (ETS). To enter the scheme companies had to register their interest between July and September 2001. Having done so, if they wish to proceed, they must submit bids in January 2002 for total emissions reductions over a five year period against a baseline of aggregate emissions over the three years from 1998-2000. In return, successful bidders will earn up to a 10% share of a £215m government incentive. However, the incentive is classed as a State aid under European Union (EU) law and so the government will require European Commission approval before the scheme can go ahead.
