II.4 The concept of emissions trading
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II.4 The concept of emissions trading book
This section gives an overview of the various approaches to the concept of trading that are relevant in the area of climate change. A clear view of these approaches is essential to understand the background to, and implications of, the approach chosen by the ET Directive. Although the issues involved in the design of a trading regime are numerous, this section focuses on the three most important: the choice between an absolute or a relative trading regime; the issue of allocation; and the question of coverage.