The answer of the following question is given below in a detailed manner as follows :

Carbon Clubs - Brief Introduction

The approach to the growing concerns of climate change, the carbon club idea, which was initially proposed by Professor William Nordhaus (Nobel Prize winner) had shown a path that can be considered.

This club could serve as a building block for climate change by focusing on the dominant players in the market. Club could focus on technologies for carbon capture and storage. "Carbon markets" refer to market-based environmental policies. In this essay, we use the term "carbon markets" to refer to systems in which a binding cap is based on the total greenhouse gas emissions of one or more sectors, with the constraints (ie facilities, companies or other entities that constitute the sector or sectors limit). Carbon market clubs offer the opportunity to reduce emissions faster, with greater innovation, at lower cost, provided that members make the initial investment in a high-integrity environmental market infrastructure. In addition, it has great potential to create incentives for countries to undertake emission reduction projects.

· There were flaws in the Paris Agreement that were highlighted by the Carbon Club and they are willing to introduce a carbon price. The design of Paris includes all nations, such a design is insufficient. Nations with few ambitions have a veto power, which explains the flaws in the Paris accords.

· A complementary design with high ambitions was needed to offset the Paris Agreement. Therefore, through the internal minimum carbon price and an external carbon rate, a Climate Club can create such a design.

The Kyoto protocol failed to curb emissions, failed to provide the necessary levels of commitments and reciprocity. Due to the problems with the Kyoto protocol, new initiatives were taken within the framework of the UNFCCC, with the priority of including all nations, also large emitters such as the United States, China, India, among others.