after three years of debate, the world's first international market to sell and purchase greenhouse gas (ghg) emissions is finally being put in place. The European parliament has agreed to trade in emissions within the bloc and the Council of Ministers has given its final seal of approval.

The eu members will present national plans to distribute emissions rights to the 10,000 industries involved by March 2004. As a result, about 12,000-15,000 companies will have to accept constraints on allowable emissions levels. Once caps on industries' ghg emissions are decided, trading will begin on January 1, 2005.

Each country's government will give out at least 95 per cent of allowances to emit free of charge but may choose to auction the rest. The allowances will have a monetary value enabling companies that reduce their emissions to sell excess credits to firms that are emitting more than their allotted share.

Most industries are from the energy supply sector, which also had the largest share in eu emissions