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\Carbon markets have become a cornerstone in the global fight against climate change. The European Union's Emissions Trading System (EU ETS) is the largest and most established carbon market globally, covering about 40% of the EU's greenhouse gas emissions. It operates on the principle of cap-and-trade, where a cap is set on total emissions and companies are allocated emission allowances. If a company exceeds its allowance, it must purchase additional credits from those who have surplus, or face penalties. This mechanism encourages industries to reduce