THE EUROPEAN EMISSIONS TRADING SCHEMES (EU ETS): SOME LEGAL PERSPECTIVES OF MARKET-BASED MECHANISMS

Abstract

In this article, the implementation of the Paris Agreement by the European Union, the current stage in the development of the climate policy of the European community in the fight against global warming in accordance with the European Green Deal, which was based on the strategy of achieving climate neutrality by 2030 by reducing greenhouse gas emissions by at least 55% to 2030 comparing with the level of 1990, are analyzed. The author researches some legal aspects of the implementation of the "Fit for 55" package of sectoral initiatives to the EU legislation, in particular the current phase of the EU Emission Trading Schemes (EU ETS), market mechanisms of interstate trading of certificates on emissions. The author draws special attention to the prospects of introducing EU’s Carbon Border Adjustment Mechanism (CBAM) with the aim of determining a fair price for emissions during carbon-intensive production of  goods that are imported into the EU, as well as stimulating cleaner industrial production in non-EU countries, and to related potential challenges and prospects for the development of climate diplomacy in order to achieve agreed compromises between the participants of the Paris Agreement in combating with global warming.