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