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… dimension 214 Abstract This chapter illustrates the need for cross-cutting studies regarding the question how the reduction of greenhouse gases emissions, particularly by means of “emissions trading”, can be regulated in an effective and efficient way within the boundaries of the rule of law. It identifies the following research challenges: 1) Typical legal concepts such as procedural rights and enforcement deserve combined studies in order to examine how to design and apply the law. 2) In-depth … and enforcement mechanism. Without the law, economic regulatory instruments can hardly be applied. However, designing and applying legal frameworks for these market-based instruments may face many challenges and problems. This is particularly true when new regulatory models are being applied, as is the case with emissions trading for the reduction of greenhouse gases. 19.3 Emissions trading: legal perspectives Emissions trading has originated in the economic literature, and only later entered … trading became part of a treaty, resulting in an international carbon market encompassing not only developed but also developing countries. However, the USA refused to accept emission reduction targets by ratifying the Kyoto Protocol, although they were at that time the most experienced country as regards emissions trading. In contrast, in order to comply with the emission reduction target of the Kyoto Protocol, the EU has adopted the instrument in the form of an EU-wide greenhouse gas …

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