Abstract
Currently, about forty national jurisdictions and more than twenty cities, countries and regions, which account for almost a quarter of global greenhouse gas emissions, are setting a carbon price as a central component of their efforts to reduce emissions and shift the growth trajectory to a more sustainable basis. Collectively, carbon-pricing tools cover about half of the emissions in these jurisdictions, which is about 12% of global emissions. An increasing number of jurisdictions are approaching carbon pricing by developing and implementing emissions trading systems. In this regard, there is a need to analyze the existing tools for the distribution of greenhouse gas emission obligations in the emissions trading system.
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