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Emission Trading Scheme is part of Kyoto Protocol’s flexibility mechanism which allows companies that have emission units to spare – emissions permitted to them but not “used” – to sell this excess capacity to companies that are over their targets.
How ETS Functions
A cap on the total emissions allowed within the scheme is set, and allowances adding up to the cap are provided to the companies regulated by the scheme. The companies are required to measure and report their carbon emissions and to hand in one allowance for each tonne they release. Companies can trade their allowances either privately or over the counter or through spot exchange, providing an incentive for them to reduce their emissions.
Benefits of ETS
Benefits of ETS for India
Concerns with ETS
Measures by government like
By: SONAM SHEORAN ProfileResourcesReport error
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