REGULATION AND TRADING WITH GREEN HOUSE EFFECT GASES AND ADVANTAGES OF SERBIA'S ENTRY IN THE EMISSION MARKET

Modern tendency to make flexible mechanism in order to stop climate change developed new kind of market based on emission trading system. Market as regulatory mechanism is capable to stop further pollution of the environment and achieve primary goal in allocation of emission permits between those who need them and those who possess them. Modern prediction are based on opinion that carbon markets will have great impact on global economy in near future. However today his influence is miserable comparing to some other markets, even though there are several very influential trading projects that are established inside EU, one of them is EU ETS. European Union trading scheme is not only important for developed countries, but also for those who have aspiration to become part of EU. Therefore basic purpose of this work is to represent principles of Carbon trading market, his function and historical development and connect them with possible advantages of Serbia's entry in the emission market.