You might mot have heard of the European Court of the First Instance, but it’s latest decision could have damaged the EU emissions trading scheme beyond repair and left the bloc’s climate change strategy in ruins. The court ruled that setting carbon limits is a matter for member states rather than the European Commission, overturning the emissions caps imposed on Poland and Estonia for phase II of the ETS between 2008 and 2012. It opens the door for both countries to emit more emissions and for other countries to also demand less stringent caps. Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania and Romania have already appealed the caps demanded by the commission, while reports claim Italy has asked for a relaxation in its cap. The likely outcome is a collapse in the price of ETS allowances as more would have to be issued, flooding an already weak market.