How effective is carbon trading as a method of reducing greenhouse gas emissions? Is it more effective than a carbon tax? In the way towards 2020 and its objectives of CO² emissions reduction, many experts do not agree about the best way to mitigate climate change. In this paper from Friends of the Earth, the author explains why carbon trading isn’t the best option. She rather urges governments to invest in green power and energy efficiency, and to introduce stronger regulations and carbon taxes.