The study analyses separately carbon dioxide, methane and nitrous oxide emissions, and how the different sectors of the economy (i.e. power production, industry, tertiary-domestic, transport, waste sector and agriculture) could reduce the emissions. Potentials and costs of reduction of methane and nitrous oxide are assessed and the respective cost curves are derived. Energy related carbon dioxide emissions are analysed using the PRIMES energy systems model for EU Member States.
The study also analyses the costs and emission reductions of an emissions trade in carbon dioxide for meeting the goals set in the Kyoto Protocol in a cost-effective way. The costs of different trading scenarios in carbon dioxide emissions are analysed using the POLES model, which models global long-term energy consumption.