The Allocation of Emission Allowances Free of Charge: Legal and Economic Considerations
Transition to a Low Carbon Future Series • Issue Paper 18
This piece of research looks into the practice of using free allowances within an ETS, and analyses whether this can amount to a subsidy. The purpose is to shed light on a policy tool that is widely used, and to discuss whether it might conflict with trade and trade rules and thus with the opportunities of trade to contribute to sustainable development.
ICTSD and the authors of the paper hope that you will find the research useful, and welcome any feed-back and suggestions.
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