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What is happening in the EU Emissions Trading Scheme
We are members of the European Union Emissions trading Scheme (EU ETS)
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here to Sell or Buy Quota
The Emissions trading Scheme (ETS) has the overall goal of reducing the
emissions of greenhouse gases (GHG) to a predetermined and lowering target in
order to help combat global warming.
This allows governments to set an overall cap on emissions around Europe and the
World and to give companies the flexibility to determine how, where and when the
emissions reductions can be achieved.
Because emissions trading uses markets and companies to make the decisions on
how to deal with the problem of pollution, it is often touted as an example of
effective free market environmentalism. The cap is set by a political process,
individual companies are free to choose how or if they will reduce their
emissions. Companies will choose the most cost effective way to comply with the
pollution regulation, creating incentives that reduce the cost of achieving a
pollution reduction goal.
Companies are allocated quota allowances in tonnes of the relevant emission, in
this case carbon dioxide equivalent. Trading in the emissions quota allows
companies to emit in excess of their allocation of allowances by purchasing
allowances from the market. Equally so, any company that emits less than its
allocation of allowances can sell its surplus allowances. The environmental
outcome is affected only by the cap allocated.
Other flexible mechanisms such as Clean Development Mechanism (CDM) and Joint
Implementation (JI) are the methods by which the UNFCCC's Kyoto Protocol enables
participants to comply with emissions objectives via the development or
investment in a carbon project.
Emissions trading principles are based upon a system of Energy Accounting, or
emissions trading, to promote balanced and harmonised development throughout the