Greenhouse gas emissions trading and the world trading system

Abstract

This article examines whether a greenhouse gas emissions trading scheme has the potential to bring parties into conflict with the WTO provisions in dealing with the initial allocation of permits, non-compliance with emissions targets, emissions trading system enlargement, and trade measures against non-members of an emissions trading club, and relates the discussion to joint implementation with developing countries. To our knowledge, this is the first article to analyze potential conflicts between an international emissions trading scheme and the world trade system.Emissions trading; climate change; WTO scrutiny; trade-related measures; compliance