Summary:
Climate change is defined as a statistically significant variation in either the state of the climate or in its variability, persisting for an extended period (typically decades or longer) at a global or regional level and is caused by intrinsic Earth processes, external influences or, more recently, human activities. Global community has made considerable scientific steps in understanding the dangers that this phenomenon entails. The realization of the need to combat climate change for the sake of future generations has enhanced cooperation on a global scale. The United Nations (UN) have taken the lead in bringing countries worldwide to the discussion table for the adoption of ambitious commitments and carefully designed long – term measures. In 1992, the United Nations Framework Convention of Climate Change (UNFCCC) and five years later the Kyoto Protocol facilitated the transit from commitment statements to measurable effects of action among states.
The European Union (EU) was always one of the leading actors in environmental protection issues. This was also the case for combatting climate change as well, with the adoption of a regional Emissions Trading Scheme (ETS), which, at time being, is the largest scheme of its kind worldwide. Divided into three implementation periods, the EU ETS, is now in the process of a structural reform. This is not just a way to encapsulate the lessons learned so far into action, but also a means of aligning with the obligations deriving from the Paris Agreement that is in force since October 2016.
The effectiveness of the EU ETS has been scrutinized by a number of actors. From a legal perspective it raises a number of issues, such as tax treatment under the national systems, compliance with competition rules and human rights concerns due to the penalties that are imposed on non – compliant operators. The present thesis is divided in two parts that attempt to assess the EU ETS effectiveness regarding its compatibility with competition and human rights rules, as discussed in legal fora, the most important being the Luxembourg Courts. The landmark EU ETS judgments, and in general the relevant case – law in its totality are expected to shed light on legal questions that arise when the EU ETS is implemented.
Keywords:
EU ETS, environmental protection, climate change, competition, state aid, penalties, fundamental rights.