The document compares and contrasts the US voluntary approach to reducing carbon emissions and the European Union Emissions Trading Scheme. The US approach relies on partnerships and voluntary targets while providing tax incentives. However, emissions are still projected to rise. The EU ETS establishes a cap-and-trade system covering major industrial sectors across 25 countries. It provides flexibility but also has disadvantages like limited sectors covered and a complex administration system. Transportation emissions are a challenge for both approaches.