Firms, the Framework Convention on Climate Change and the EU Emissions Trading System

This paper analyses which likely effects international co-operation on climate change, the emissions trading directive of the European Union currently introduced and the tradable emissions permit systems specified under the UN Framework Convention on Climate Change (FCCC) will have on energy management strategies of European firms. Based on this analysis, the paper concludes about the joint effect of these and describes and discusses different possible reactions of firms in terms of their energy management strategies. The paper closes with general remarks on international climate policy co-operation and assesses if the instruments implemented so far are sufficient for an optimal climate policy.