The European Commission published verified emissions data for 21 of the 25 EU member states on May 15. It showed the EU undershooting its emissions goal for 2005 by 64 million tonnes. Only 5 member states, including the UK, have so far reported failing to meet their goals.

Is this a cause for celebration? Or did most member states and companies simply miscalculate their projected emissions for the year? Some observers and commentators have suggested that some companies may have inflated their projected CO2 emissions in order that they would appear to meet their targets.

The rules for Phase 1 of the EU Emissions Trading Scheme (2005-2007) are set in place. How can Europe make sure that it sets realistic goals that constitute an actual reduction of emissions, and not over-inflated goals that are meaningless? Must we wait until Phase 2 starts in 2008? Or can the European Commission make the necessary changes now?