Emission trading scheme
From ACT Wiki
Environmental policy.
(ETS).
An administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.
For example, the European Union Emissions Trading System (EU ETS) is a mandatory cap and trade scheme that requires Europe's heavy industries and power generators, as the continent's major emitters of carbon dioxide, to monitor and report annually on their carbon dioxide emissions and to purchase and return an amount of emissions allowances to the government that represents each year's carbon dioxide output.
- Emissions to fall as caps reduced
- "Emissions trading works by setting a cap on the total amount of greenhouse gases that can be emitted by polluters and issuing allowances accordingly.
- The cap [for a given polluter] is reduced over time so that [their] total emissions fall.
- Carbon allowances can be bought at auction and traded, and these markets determine the carbon price."
- Climate change A to Z - Financial Times.
See also
- Cap and trade
- Carbon Border Adjustment Mechanism
- Carbon trading
- EU Emissions Trading System (EU ETS)
- Streamlined Energy and Carbon Reporting
- UK Emissions Trading Scheme (UK ETS)
