CAP-AND-TRADE AND PROJECT-BASED FRAMEWORK: HOW DO CARBON MARKETS WORK FOR GREENHOUSE EMISSIONS REDUCTION?

The article discusses the evolution dynamics of the carbon markets and its role in the greenhouse emissions reduction. The authors look into the principle of cap-and-trade (European Emission Trade Scheme) and carbon credit from deployment of emission reduction projects. Also offered is the basis of a comparative analysis among different market structures, performances, limits, and potentials.