For the past three years, the European Union has been operating the world's largest emissions trading system and the first system to limit and to trade carbon dioxide emissions. An MIT analysis of this initial "trial" phase finds that—despite its hasty adoption and somewhat rocky beginning—the European Union cap-and-trade system has operated well and has had little or no negative impact on the overall EU economy.

Japan, Italy and Spain face payments of as much as $33 billion combined for failing to reduce greenhouse-gas emissions as promised under the Kyoto treaty.

The three countries are the worst performers among 36 nations that agreed to curb carbon dioxide gases that cause climate change. The 1997 Kyoto accord designed to slow global warming demands that polluting nations buy credits for their excess emissions from other industrial polluters or investors.

- posted by Alan Grey @ Monday, June 16, 2008