LONDON (Reuters) - A dual-level system of national emissions caps and carbon trading schemes should play a "central role" in cutting global greenhouse gas emissions, a report commissioned by the British government said on Monday.
"If well-designed, a dual-level system of global carbon trading could reduce the costs of emissions by up to 70 percent," said Mark Lazarowicz, the Prime Minister's special representative for carbon trading.
Linking the European Union's Emissions Trading Scheme with a proposed U.S. cap and trade scheme by 2015 is ambitious but should be a priority, the report added.
The report also said the United Nation's Clean Development Mechanism (CDM) should be reformed and streamlined, and it identified a sectoral approach to registering clean energy projects as its "preferred option" for cutting emissions in emerging countries like China and India.
(Reporting by Nina Chestney, writing by Michael Szabo; editing by Keiron Henderson)
