The question of compliance with the polluter-pays principle and State aid rules within the European Emission Trading Scheme

Abstract

This essay aims at pointing out the core issues of the European Emission Trading Scheme with regard to the polluter-pays principle. The issue can be addressed through the analysis of the concept of State aid and their environmental implications. The main aim is to come to be able to come to a conclusion whether it is possible to strike a balance between environmental considerations and competition rules or whether there would be always a shift between the two approaches, precluding the possibility to address these issues together.