Document summary
The EU has a proud record of taking the lead in tackling climate change, and the City of London has been a major beneficiary of this leadership. However, recent criticisms of the EU's approach and substantial problems with Europe's emissions trading scheme risk snuffing out the EU's momentum and undermining the City of London's leading role in carbon finance. This report reviews EU climate policy and carbon trading developments and makes recommendations to restore EU's momentum on climate change through ambitious emissions targets, a new Carbon Policy Market Committee and 'border carbon adjustements' for certain sectors.