When designing emissions trading schemes, the decision on allocation methods is a crucial element. After a long and controversial debate, the German government has now decided to introduce the auctioning of credits. Approximately nine percent of all allowances will be given out against payment in the second trading period (2008–2012). In 2008, rules for the German auctioning system are expected to be specified by a regulation. Environmental economists tend to support auctioning for reasons of efficiency while many politicians and the public mostly expect the reduction of unwanted distributional effects (“wind-fall-profits”).

On 11 July 2007, an Ecologic Transatlantic Lunch Dialogue was held in Berlin in honour of Steven C. Clemons and Andrew Oros. Steve Clemons is the Director of the American Strategy Program at the New America Foundation, as well as author of the influential Blog "The Washington Note". Andrew Oros is a Professor of Political Science and International Studies at the Washington College. Drawing on the Republican and Democratic presidential primary process, Steve Clemons and Andrew Oros agreed that environmental and climate change issues are not the centrepiece of discussion, but may play a role when linked to security aspects.

<p>&#13; Besides the potential benefits of biomass, there is increasing public awareness of the more problematic aspects, including a possible increase in the intensity of agriculture and further destruction of the rainforest. In her lecture, Stephanie Schlegel outlined the opportunities for and the risks of renewable energy expansion with emphasis on the current debate surrounding the bioenergy boom. In addition, she led a discussion with the audience about which instruments are useful for creating the bioenergy boom sustainably and the requirements for policy and consumers.</p>&#13;

<p> On 14-15 June 2007, the German Council on Foreign Relations (DGAP) convened the international conference &quot;Europe and America: Managing the 21st Century&#39;s Agenda to look at an array of topical issues including global warming.&nbsp; Stefan Theil, Bureau Chief of Newsweek in Germany moderated, and Patrick S. Moon, Director at the US Department of State, and R. Andreas Kraemer of Ecologic addressed the question &quot;How to Tackle Climate Change?&quot;.</p>

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On 4-5 June 2007, a workshop on the Water Framework Directive and Hydropower was held in Berlin. Focus of the workshop was on hydropower use and the relationship to hydromorphological changes. The workshop aimed at the exchange of information and views on good practice in hydropower use, strategic priorities on the catchment level as well as instruments to promote hydropower and to improve water status.

<p>&#13; The United States  –  though the 2005 Energy Policy Act – and the European Union – through the European Energy Policy – created incentives for expanding biofuel production and use.  On 25 May 2007, the German Marshall Fund of the United States (GMF) and DaimlerChrysler convened a conference in Berlin on "Transatlantic Approaches to Biofuels".  R. Andreas Kraemer of Ecologic spoke on Assessing European and U.S. Policies.</p>&#13;

<p>&#13; The United States – though the 2005 Energy Policy Act – and the European Union – through the European Energy Policy – created incentives for expanding biofuel production and use. On 25 May 2007, the German Marshall Fund of the United States (GMF) and DaimlerChrysler convened a conference in Berlin on "Transatlantic Approaches to Biofuels". R. Andreas Kraemer of Ecologic moderated the discussion on assessing European and U.S. policies.</p>&#13;

<p>&#13; A large percentage of Europe’s territory consists of rural areas that contain more than half of its population. Many problems of European societies such as an ageing population, high unemployment rates, social disparities and the lack of adaptive potential to the global market are more pronounced in rural areas than elsewhere. To overcome these problems, it is essential to link public, private and inter-sectoral initiatives to foster innovation. Rainer Müssner presented the EU-funded project RAPIDO, that has been established to analyse current best practices concerning the development of innovation in agriculture, forestry, the food sector and the wider rural areas, as well as to analyse methods to transfer knowledge to different target groups.</p>&#13;

<p>&#13; The question of "Governance" of natural resources, in other words how societies deal with the use of natural ressources, is central to each discussion about sustainability. Only "good governance" can guarantee the sustainable use of natural resources, protection of biodiversity, and indirectly help to implement the EU sustainability strategy. However it is quite difficult to measure and evaluate the level of good (bad) governance and to make the somewhat abstract concept more tangible. Rainer Müssner presented two EU funded projects dealing with the issue of "Governance of natural resources", in which Ecologic is involved as co-ordinator or partner.</p>&#13;

<p> The United Nations has dedicated the annual International Day of Biological Diversity on 22 May 2007 to &quot;Biological Diversity and Climate Change&quot;, highlighting both the interlinkages between the two issues and the interaction between the relevant international or multilateral conventions. On 7 May 2007, the joint CDU and CSU party in the German Federal Parliament (Bundestag) held an Expert Meeting to review the state of the debate and explore policy options and needs. Ecologic Institute contributed a presentation focussing on the international regimes on biological diversity and climate change.</p>

<p> Benjamin G&ouml;rlach presented some preliminary results of the WaterCost Project, which has been set up to develop and test a practicable methodology for cost-effectiveness analysis of groundwater protection measues. WaterCost brings together partners from five European regions, including municipalities, water supply companies and environment agencies. Ecologic Institute supports the German partners in the WaterCost project in the application of a cost-effectiveness analysis in a Frisian groundwater protection area. In his presentation, Benjamin G&ouml;rlach surveyed the costs and the effectiveness of 10 possible measures to reduce nitrate pollution from agricultural sources in the groundwater catchment area, and discussed potential combinations of these measures.</p>

To contribute to a wider dissemination of information relevant to renewable energy and energy efficiency especially in the EU’s southern and eastern neighbouring countries, this&nbsp; international Ministerial Conference under the German EU Presidency 2007 was organised by Ecologic.