The Role of Flexibility Mechanisms in EU Climate Strategy: Lessons Learned and Future Challenges?

Abstract

The main objective of this paper is to examine the evolution of European Union (EU) climate strategy, scrutinising in particular developments in EU's views on the so-called flexibility or Kyoto mechanisms. In brief, the paper argues that there has been a gradual change in EU's views, from the role of a sceptic in the run-up to Kyoto towards becoming more of a frontrunner on emissions trading in recent years. The need to 'save Kyoto' and the protracted development of EU climate policy are highlighted as two of the most important drivers behind this process of change. This paper also discusses some of the lessons learned from international negotiations and the development of EU climate policy. Finally, and drawing upon the lessons learned, the paper explores key future challenges for the further development of EU climate strategy.