The chapter starts by outlining the core elements of an emissions trading scheme and the concept of harmonization. Second, it introduces the legal principles which will be used for the analysis. Third, it examines the allocation methodology in Directive 2003/87/EC from the perspective of the concept of harmonization. It reviews the problems to which that allocation methodology has given rise, from the perspective of legal principles, and considers the solutions which have been proposed to solve them in the recent Commission's proposal to amend the Directive. Last, it analyses whether the particular level of harmonization proposed by the Commission seems justified on the basis of those principles.

6 COM(2008)30 Final.

7 See in general, for the polluter pays principle, Jans and Vedder (2007, p. 43). In the context of the EU ETS, see for instance Hepburn et al. (2006); for the principle of subsidiarity, see for instance Kramer (2007, pp. 17-20); for the principle of equality, see Tridimas (2006, pp. 95 et seq.). In the context of the EU ETS, see Del Río (2006, p. 464).

8 See for instance Zapfel (2007). See also Ecofys (2006, p. 6).

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