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The Australian Federal Government has vowed to set out a condition for mandatory CO2 emissions standards that would be applied on GHG emitting industries as well as on new light vehicles from 2015. An ETS was either (and still may be) economically superior to a carbon tax and/or that it was easier to be implemented as it was better suited to the preferences of various powerful stakeholders, e.g. national governments and business organisations.To answer the central question,Part1 of this book begins with an overview of the literature on the pros and cons associated respectively with emission trading and carbon tax.It then turns to the examination of EU s decision making and implementation of these two measures,in light of the costs and benefits to the major stakeholders under them.Part2 of this book explains different car emission reduction policies of some major GHG emitting countries.This part argues that, despite cancelling the severely criticized 'Cash for clunkers' program the Australian federal government is still committed to reduce the level of GHG emission as part of its global response to climate change mitigation.However, this book proposes for strict emission standards.