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That was done as a bribe during the original Kyoto negotiations, with the understanding that America (the world's biggest emitter of greenhouse gases and the country least inclined to make cuts at home) would purchase Russia's unused emissions quota under a complex trading scheme.
The price of carbon permits has been languishing at around 13 euros, or $17.60, apiece for some months, meaning that if companies exceeded their emissions quota, they would need to pay 13 euros for each excess ton of carbon dioxide produced -- a price that experts have said is far too low to result in a significant change in the way companies generate and use energy.
In order to make full use of this approach, policy maker should assign an appropriate emissions quota allocation scheme, extend coverage of various sectors and promote the expansion of low-carbon technologies such as renewable energy.
Carbon trading price and market scale are closely related to various factors such as the emissions quota allocation scheme among sectors, coverage of participating sectors and the level of renewable energy development.
The mechanism will operate under the constraint of a global emissions quota (total) for the entire shipping industry, based on emission data from the past and according to target reduction principles and guidelines published by the Intergovernmental Panel on Climate Change (IPCC) organization (IPCC 2007).
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The world lacks the machinery to force unwilling countries to comply with emissions quotas.
Companies exceeding their emissions quotas can buy certificates from companies that succeeded in shrinking their carbon footprint.
Away from the sound-bite diplomacy, those countries are eager to draw on European experience in developing a low-carbon economy, administering emissions quotas and carbon trading.
"The court confirms the validity of the directive that integrates aviation activities in the system for trading emissions quotas," the ruling said.
Introduced in 2005, the system allocates emissions quotas among major polluters and requires them to buy permits, each representing a ton of carbon dioxide, if they overshoot.
Under such a system, called "cap and trade," utilities that stay below emissions quotas can hold credits for the future or sell them on the open market.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com