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The European Parliament formally approved six new climate and energy laws in December, fulfilling the French Presidency’s stated objective of achieving some form of agreement before the end of the year.

The most significant aspect of the adopted climate change package is Parliament’s endorsement of the heads of governments’ final compromise on revising the EU ETS, reached on 12 December.

The issue of carbon leakage - and the vulnerability of industries such as the cement industry – was highlighted during a CEMBUREAU press conference in December 2008.

The European Environment Agency has published a comprehensive report on the implementation of the EU ETS by Member States, following the termination of the first trading period (2005-2007).

Carbon capture and storage technology (CCS) will not be mandatory for fossil fuel power plants in the EU.

The Directive to include aviation in the EU Emission Trading Scheme (ETS) has been published in the EU’s Official Journal, and will enter into force on 2 February 2009.

ArcelorMittal has failed in its challenge against the legality of the Emission Trading Directive (ETD).

The main steps in the benchmark process have now been published.

Declining industrial demand reduced the price of CO2 emission allowances to record lows of 8.05€ on 12 February 2009, raising fears that the global economic crisis could undermine the EU’s carbon market.

The International Emission Trading Association (IETA), which represents emission trading businesses, has criticised EU plans to shut down the clean development mechanism (CDM) for larger developing countries.