Kyoto is absolutelu meaningless now, you know that, too, Valuethinker. The EU CO2 trade is not about Climate Change but about energy policy. The US is talking about oil, the EU about CO2, but in fact the EU is also talking about energy, albeit under disguise. The EU is talking about depleting coal, depleting North Sea oil and gas and imports from Russia, but it cannot say this openly, because the news are too bad.

The emission trade is mostly energy policy, quotas for the EU member countries and an attempt to regulate the energy use of non-EU counties in order to maintain competitivness. You say that the CO2 emissions should get down from 7 million tons to 2 million. This is not Kyoto target. The emissions are growing right now, not diminishing, despite of the very modest goals of the Kyoto agreement.

But you are right, the task is really to avoid low EROEI, high CO2/net energy solutions. But the EU is now doing the exact opposite by promoting very low EROEI biofuels. This is economically and environmentally unsound. But this is touted as "green" policy! The EU energy policy is now mostly opening up the markets and importing more. Joining the US in ME wars seems now to be part of that policy. Here we are now.