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Emissions Trading: With Backloading Plan on Track, What Lies Ahead for the EU Emissions Trading System?

One of Bloomberg BNA’s expert authors examines the EU’s Emissions Trading System’s recent history as well as identifying the most likely future options to strengthen it and solves its problems.

 

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By Maureen F. Gorsen 

The European Union's Emissions Trading System earlier this year was in trouble as the carbon price sank to record lows. A plan to defer the auction of additional emission allowances has helped the price to rise since then, but the so-called backloading is merely a temporary fix. This article examines the trading scheme's recent history and identifies the most likely options to be pursued in the future to strengthen the ETS and cure its problems.


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