Allocation process central coordination

A distinguishing feature of the allocation process in the EU ETS is the highly decentralised manner in which it was done. This characteristic is what could be expected of a multilateral system in which the constituent members retain significant elements of national sovereignty, not to mention one in which the principle of subsidiarity is enshrined in principle and practice. Nevertheless, the role of the centre was critical in arriving at the result that can be observed today. Indeed, it is hard to imagine how twenty-five nations could have succeeded in such a multinational enterprise without the central coordinating role played by the European Commission. Three aspects of this role are especially important. 

Mainstreaming necessitates the distribution of roles and responsibilities between the various levels of government and with the society. It gives emphasis to the local authority s implementation role, central government s coordination function (manifested in the control processes, allocation of resources, and exercising oversight on the performance of the local authority), and the participation of the civil society which is crucial in all facets of the process. Thus, it optimizes resources from these stakeholder institutions to reduce the risks. 

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