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Regulated carbon trading |
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Many experts have supported the formation of an international body that will regulate carbon trading. Some experts believe that internationally regulated carbon trading is the only effective way to reduce carbon emissions.
Reduction of carbon emission
Problem of carbon emissions has been persisting for many years now. Carbon dioxide emissions have been chiefly responsible for adverse climate changes. Numerous studies have confirmed that human causes of climate changes are too significant and potentially devastating, to be ignored any further.
The challenge lying before us is too big for any individual nation to handle. That is why experts suggest formation of an international body, a World Environment Agency, which will help in regulating carbon trade and contribute to the process of reduction of carbon emissions.
Simon Linnet
Simon Linnet, Executive Vice-Chairman of Rothschild, has published a paper, Trading Emissions, where he discussed matters related to regulation of carbon trading. It was Simon Linnet, who in his published paper, proposed a World Environment Agency for regulating carbon trade.
Comprising sovereignty
A major challenge that regulated carbon trading has to meet, is to convince national governments to forgo some of its sovereignty on matters related to carbon trading to the international body. Without forgoing sovereignty, carbon trading cannot be regulated on a global platform.
Lose of sovereignty is likely to be a major impediment to global regulated carbon trading. Developing countries like India and China are unlikely to conform with a global, regulated carbon trading system owing to its rapid expansion plans.
Cap-and-trade system
Global regulated carbon trading will necessitate the adoption of a cap-and-trade system. This is quite obvious since taxation and regulation can only work within a local and national framework. For a global solution, cap-and-trade system is more effective.
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