Emissions trading

Emissions trading is a sophisticated tool to foster greenhouse gas reductions.

TheCompensators* participate in emissions trading with the goal of reducing the amount of greenhouse gases that are produced by European industry.

Here we try to give a a simple and brief explanation of why buying and deleting emission allowances is a good way of reducing emissions.

This explanations is given along the following six questions

  1. Why is participation in emission trading a good way to reduce CO2 emissions?
  2. What is the EU Emissions Trading Scheme (EU ETS)?
  3. How do TheCompensators* participate in the EU ETS in practice?
  4. What distinguishes TheCompensators* from other compensation schemes?
  5. How does the EU ETS fit into the framework defined by the Kyoto Protocol?
  6. How can emissions trading be improved further?
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