Depends on what your goal is. From an environmental point of view exemptions make little sense and each exemption simply weakens the overall effect of a carbon trading system. However, from a political point of view one would want to exempt certain sensitive industries that may move their operations outside of the country in order to escape a strict carbon trading regime. This is the policy that the EU has adopted. It has recently listed industries to be exempted from the carbon trading system to be implemented in 2013. These industries include high carbon emitters like steel cement and chemicals. The solution to this problem is a global–rather than national–carbon trading system.
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