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Backloading

In the emissions trading context, backloading means that emission allowances are “discontinued” temporarily, i.e. taken from the market for a specified period of time. Backloading is carried out when there is a surplus of emission allowances on the market – e.g. due to an initial oversupply of allowances or an economic crisis - and the carbon price is too low to create an incentive for mitigation actions.

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The Climate Policy Info Hub has been created within the POLIMP project which has received funding from the European Union's Seventh Framework Programme for Research, Technological Development and Demonstration under Grant Agreement Number 603847.

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