Under the emissions trading scheme, the amount of carbon dioxide - a gas that causes climate change - that industries can emit is capped. Companies that use less than their allowance can sell their excess permits.
The paper quoted Margaret Beckett, UK secretary of state for the environment, as saying that emissions trading would boost the City of London, which has become an international centre for this emerging business.
A senior associate at the law firm Baker and McKenzie added that London has developed one of the biggest concentrations of expertise [on] greenhouse gas emissions trading. Many of the contracts are based on English law, and already the City is working on some sophisticated financial products around carbon, he added.
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