EU ETS faces back-loading test

A critical condition

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To many observers, the European Union Emissions Trading System (EU ETS) is a shining example of bold collective action by national governments aimed at achieving a noble common cause – the reduction of harmful greenhouse gas emissions and the slowing of climate change. To others, the EU ETS serves as a cautionary tale of the various pitfalls and banana skins that crafting a traded emissions market can bring.

As the world’s largest carbon trading scheme, the EU ETS is a “key tool for reducing

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