In 2005 the EU scheme for trading of CO2 emission allowances started. A wide range of stationary sources are covered. Transport, however, is not included, even though it contributes to a large portion of total greenhouse gas emissions in the EU. Is emission trading in the transport sector feasible? Could emission trading contribute to reducing emissions of gases from the transport sector ?This may be possible, certainly if a number of recommendations suggested by CE (Solutions for environment, economy and technology) in this study for the Swedish Environmental Protection Agency were to be followed.