This is also very relevant for Europe as well. Remember the "EU Emissions Trading Scheme" mentioned in the MacQuarie report?

"On top of the technical potential of the Makó Trough, we have a bullish view on long-term European gas pricing. We believe the proposed tightening of carbon permitting arrangements under the EU Emissions Trading Scheme (ETS) will reduce coal use and drive another ‘dash for gas’, since the nuclear power new-build program—the only real alternative—has not yet got off the ground. We estimate that if the proposals for ETS Phase 3 in 2013 are carried out in full, they could eventually lead to additional European gas demand gap of up to 70bcm pa.
This is 12% of Europe’s current demand, effectively adding the gas requirements of a country the size of Italy."

And this is from yesterday:

EU's 2020 climate package gets final, formal sign-off

London (Platts)--6 Apr 2009

The EU's 2020 binding climate targets to cut emissions and increase
renewable energy use had their final sign-off Monday as EU ministers adopted
the climate change package agreed by EU leaders and the European Parliament
last December.

The package includes stricter emission limits on cars, rules to boost the
use of efficient biofuels and a fuel quality directive to curb greenhouse
gases from the entire fuel production chain by 6% by 2020.

This is the final stage in the formal approval process for the new EU
renewables directive, the revised EU emissions trading scheme directive, the
new EU carbon capture and storage directive and the EU decision setting
binding 2020 greenhouse gas emission targets for each of the EU's 27
countries.

The European Commission proposed the laws, known collectively as the
climate package, in January 2008. Member states are required to transpose the
directive for biofuels and fuel cleaner fuels into national law by the end of
2010.