central to the achievement of the EU's ambitions. In a period of constrained public finances, if governments want to leverage … design of the EU emissions trading system and the distribution of carbon allowances should take into account more explicitly … its power to leverage innovation. A move to a 30 percent EU emissions reduction target, which would involve a tighter …

instruments, like subsidies, when used in isolation. For the EU, this is perhaps the biggest challenge for its green technology …