This article starts with a review of climate policy targets (temperature, concentrations and emissions for individual regions as well as the world as a whole). A 20-40% reduction target for the EU is proposed for the period 2000-2020. It then looks at costs to meet such targets, and concludes...

We review the total allocations under the EU ETS first phase and compare these against historical emissions, projections, and national Kyoto targets. We conclude that most Phase 1 allocations are excessive on all these measures, particularly the last, and argue that this is potentially damaging...