Is the EU ETS working?

The progress made by the launch of the European Union's Emissions Trading Scheme (EU ETS), launched on 1 January 2005, is discussed. With the launch of the scheme, the national allocation plan for Greece is get approved, so the allocations of emissions allowances for all the countries in the EU are known. The volumes of allowances being traded are gradually increasing, with over 1mn tonnes being traded on some days. However, a major pitfall is that discovery of the least cost of abatement has to be allied with investment in the area of abatement itself.