10 Sep '12, 9am

Global Carbon Trading Takes a Big Step Forward

Global Carbon Trading Takes a Big Step Forward

’s ETS, which began in 2005, is the biggest program by far, operating in 30 countries and covering power stations, oil refineries, iron and steel works, cement plants and more. It is a cap and trade plan which puts a limit on the total amount of GHG emissions (the cap), and then divides that amount into shares (known as allowances) which can be bought, sold or traded. If a company does not have enough allowances to cover their emissions, they must purchase more allowances from others or pay a substantial fine. Companies with lower emissions can sell their allowances or trade them on the open market. The number of allowances is reduced each year. According to this scheme, EU emissions in 2020 will be 21 percent lower than 2005.

Full article: http://www.triplepundit.com/2012/09/global-carbon-trading/

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