Greenhouse gas emissions trading ("Emissions Trading") has been in the news frequently over the past few months and the developing market continues to face numerous regulatory and commercial challenges during 2010. The way in which the market reacts to these issues will shape Emissions Trading in the years to come.

Recent issues include the failure to reach a new international climate change accord in Copenhagen to replace the Kyoto Protocol (the "Protocol"), VAT carousel fraud, the phishing of EU Allowances, "recycling" of CERs2 in Hungary and the uncertainty surrounding the key aspects of Phase III of the European Union Emissions Trading Scheme ("EU ETS").

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