The European Emissions Trading System is a central pillar of German climate policy. After its introduction in 2005, some weak points, however, became obvious so that great hopes were pinned on the National Allocation Plan for the second trading period (NAP II). In their article for DowJones TradeNews Emissions, Helen Lückge and Camilla Bausch discuss if the German NAP II fulfills its economic objectives.

In the end of 2005 the parties to the Kyoto Protocol convened to decide on a number of operational aspects of the international climate regime. More importantly, they also agreed to launch consultations on future mitigation commitments for the period after 2012, when the current "Kyoto targets" expire. Dr. Camilla Bausch and Michael Mehling analyse the outcome of the meeting in an article and discuss the summit’s significance as a first step in the further evolution of the international climate regime.

In this article Dr. Nils Meyer-Ohlendorf, Ecologic Senior Fellow, discusses the need for international environmental governance reform, the advantages and disadvantages of creating a United Nations Environment Organization (UNEO) and its potential in helping to achieve the Millennium Development Goals. The article is available for download.

Contingent valuation studies and their results are often criticised. This paper describes the findings of an experimental survey that tests the influence of survey design on strategic behaviour.

Like environmental policy in general, water policy in particular is subject to constant change. In his article published in the journal Wasser und Abfall (Water and Waste), Peter Kessler describes the shift from an instrumental to an objective-oriented approach. While the water crisis in the Hessisches Ried was still mastered with the instrumental approach, the quality objectives of the German Länder Working Group on Water Issues (LAWA) and the water quality objectives of the Water Framework Directive (WFD) represent the quality objective orientation.

For the Russian government, the export of oil and gas is not just a good business deal. The gas conflict with Ukraine, with which the Russian leadership announced the new year and its G-8 presidency, showed that the Kremlin’s energy policy is at the core of its foreign policy – one that makes clear old power claims in the post-Soviet realm and beyond. Sascha Müller-Kraenner writes on east-west energy alliances in Kommune 1/2006. The article is available for download.

In Stuttgart on 29 November 2005, Baden-Württemberg‘s Ministry for the Environment held an Information Day on the IPPC Directive’s implementation in Germany and specifically in Baden-Württemberg. It has been concluded that the environmental protection standard in Germany presents a solid basis for compliance with the guidelines of the Directive, and that co-operation between public authorities and businesses is an essential prerequisite for practical implementation. Ulrich Maurer and Alexander Neubauer compiled the event’s findings.

The atmospheric CO2 content, which might increase more than two-fold by the end of the century, not only has an impact on the global climate, but also directly affects the water balance of the terrestrial biosphere. Anna Leipprand and Dr. Dieter Gerten from the Potsdam-Institute for Climate Impact Research published an article in the Hydrological Sciences Journal that analyses these impacts.

In their article for the Zeitschrift für kommunale Wirtschaft (Magazine for Local Economy), Nadine Herbke, Ecologic Institute, and Dr. Nicole Weiß, Verband kommunaler Unternehmen (Association of Local Businesses) (VKU), present the results of the "Entwicklung lokaler Wasserpartnerschaften" ("Development of Local Water Partnerships") workshop, which took place on 23 November 2005 in Bonn.

On 13 July 2005, the new German energy law entered into force. In their article, Dr. Camilla Bausch and Julia Rufin LL.M. explain the implementation of the European Directives in accelerating the liberalisation of the internal electricity and gas market. Following a description of the previous process of liberalisation at the European and National levels, the introduction of the new regulation of the energy market is discussed and the new rules concerning the de-monopolisation of the energy sector are explained. Furthermore, specific national rules outlining the European requirements are illustrated.

The implementation of the Water Framework Directive is one of the main items in the field of environmental protection. As a main novelty, the Directive foresees the integration of economic aspects into water-related decision making. However, current practice in Germany does not always match the definitions and approaches for economic evaluation developed at EU level, as Benjamin Görlach and Eduard Interwies note in this article "What is the Value of Water? Assessing Environmental and Resource Costs in the Water Framework Directive."

Between 1998 and 2004, Europe suffered more than 100 major flooding events, including the catastrophic floods along the Danube and Elbe rivers in the summer of 2002. In the wake of these events, the European Commission has embarked on the development of a European policy on flood risk management, resulting in a proposal for a floods Directive that was tabled in January 2006. This paper by Thomas Dworak and Benjamin Görlach tracks the development of the European approach to flood risk management and discusses future options for a European policy on floods.

The EC Water Framework Directive mandates that good ecological status should be reached in all water bodies in Europe by 2015. To this end, according to Article 11 of the Directive, programmes of measures shall be established for all river basins. The selection and combination of measures within these programmes should also take account of cost-effectiveness considerations. In an article for the Journal gwf Wasser / Abwasser, Benjamin Görlach, Nicole Kranz and Eduard Interwies present a possible methodology for this selection process, which was developed by Ecologic for the German Federal Environment Agency.

In his article in the "Zeitschrift für Umweltrecht," Nils Meyer-Ohlendorf (Ecologic Institute) analyzes what consequences the Treaty establishing a Constitution for Europe would have for environmental policy. This treaty was signed in 2004 but did not come into force as it was not ratified. The author focuses on the institutional architecture of the European Union, which would undergo some changes due to the treaty.

In this article, Camilla Bausch and Julia Rufin provide an overview of the content of the German energy law, as adopted by the German Parliament in 2005. The new energy law is based on European Directives. The authors focus their contributing article on the essential new provisions. A description of the future regulation of the energy market is provided, and the new rules concerning the unbundling of the energy sector are exposed. Furthermore, provisions that extend the requirements of European law are described.