Paying the Carbon Price analyzes the practice of freely allocating permits in Emissions Trading Schemes (ETSs) and demonstrates how many heavy polluters participating in ETSs are not yet paying the full price of carbon. This innovative book provides a framework to assist policymakers in the design of transitional assistance measures that are both legally robust and will support the effectiveness of the ETSs whilst limiting negative impacts on international trade. Within the realm of international and comparative law, this book closes the gap between the legal frameworks of ETSs in practice, the economic research data and the doctrinal analysis of WTO law. These interesting insights and fresh ideas explore the connection between ETSs, the problems with free allocation of emission permits and the analysis of complex legal instruments. This accessible resource will be invaluable for those researching and teaching climate change law and policy, international trade law and environmental economics. It will also be a useful tool for policymakers, lawyers and economists.