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The European emissions market seems to have got off to a promising start. Overall, the underlying mechanisms have worked well, and more than 250 million tonnes were traded last year.

The European Commission deserves credit for this achievement. Arguably, the commitment behind the ETS is the only thing keeping the Kyoto Protocol alive. But there are still many hurdles for the EC to overcome.

First, it must finish implementation of phase one. Several countries, including Italy and Poland, are ye

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