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What is Emissions Trades?

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writer admin date11-07-05 10:51 hit : 1,872

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☞ Emissions Trades was initially introduced on the occasion of Kyoto Protocol (at Article 17), to secure flexibility when it comes to implementation of greenhouse reduction. A central authority sets a yearly limit or cap on the amount of a greenhouse gas (Carbon Dioxide). Firms or nations that need to emit more greenhouse gas than permitted must buy permits from those who emit less than the limit. In a sense, the transfer of permits is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions. Thus, in theory, those who can reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest cost to society. 

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