Is carbon finance the answer to climate control?

Purpose - The purpose of this paper is to evaluate the continued viability of the European Union emissions trading scheme (EU ETS) as a tool for climate control in the face of continued criticisms. Design/methodology/approach - This evaluative study makes use of connected existing studies and other secondary data from economics, management, politics and law. Findings - The study found that though there were various flaws in the scheme in its initial launching phase, the insights gained are being applied in the second and subsequent phase of the EU ETS. It is also ascertained that despite initial doubts, a market for carbon finance is successfully established in the EU albeit with various limitations. The scheme is also poised to link with other regional schemes to address climate control. Research limitations/implications - Though the study relied primarily on secondary data, the findings were sufficiently triangulated with perspectives from economics, politics, management and law. The findings would also provide useful and relevant information to those engage in the theory and practice of carbon finance. Originality/value - This paper updates on the legal and economic significance of the EU ETS as a market mechanism to address climate change.