The project expands and develops the development of the EU emission trading system (ETS) and its implementation in Germany. EU legislation is planned or already adopted introducing major changes to the existing ETS, including new allocation rules, the inclusion of aviation and the CCS directive. Ecologic Institute provides legal expertise for the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety in the preparation and implementation of new concepts and legislation.

Emissions trading covers about 50% of all German greenhouse gas emissions and is one of the main climate protection instruments in Germany and the EU. The objective of the ETS is to mitigate greenhouse gas emissions efficiently. The EU established the ETS in the first trading period 2005 to 2007. Subsequently, major amendments of the emissions trading directive and a CCS directive have been adopted or are expected. The project provides legal expertise regarding the negotiation of the EU-directives and their implementation into national law. In addition, the project also develops proposals for the further development of German energy regulation with a view to achieving the climate objectives. This includes legal analyses and support in respect of the inclusion of the aviation sector, allocation and auctioning as well as the regulatory framework for carbon dioxide capture, transport and storage (CCS).