This research examines how uncertainty about future climate change agreements is impacting investment decisions in European electricity companies. By surveying these companies, the study reveals that they are preparing for various possible post-Kyoto scenarios and are taking different approaches to manage this uncertainty. While many companies expect future agreements to involve emissions trading systems, they hold diverse views on what these agreements might look like. The unique characteristics of each company and the country they operate in influence their strategies and decisions related to emission control activities. Meeting Kyoto and potential future targets significantly influences investment choices in the European electricity sector, and uncertainty about future agreements is already affecting mitigation investments. The study emphasizes the urgent need for international agreement on emissions reduction targets and mitigation strategies to ensure the continuity of the global emissions trading system set out in the Kyoto Protocol.