EU reform of carbon trading "must be radical"

British think tank proposes changes as European commission finalises review of emission scheme

The EU must make radical changes to its emission trading scheme to guarantee it future success, British think tank the Centre for European reform (CER) said in a pamphlet released on Wednesday.

The European commission has limited resources to police the scheme and is reluctant to confront member states that do not comply, CER claims. Current trading periods are also too short, it says. This discourages long-term investments in clean technologies.

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