Allocation

In a market mechanism such as emission trading, emission permits have to be shared (or allocated) among the different actors.

The most widespread allocation methodologies are:

See also : The Impacts of the Use of Different Benchmarking Methodologies on the Initial Allocation of Emission Trading Scheme Permits to Airlines

In the UNFCCC, the reduction effort has been negotiated and calculated for each industrialized country (Annex I to the UNFCCC) according to the differentiate responsibility and capacity principles.

The European Union (EU15) has negotiated a global reduction objective of -8% of CO2-eq. emissions in comparison with the 1990 level (= the "European bubble"), that has been shared among the Member States on the basis of the triptych approach.

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