How will the emissions trading mechanism for greenhouse gases work?
Firms that have an emission intensity lower than their targets will receive credits that could be sold to those who are unable to meet their obligations. Credits could also be “banked” for future use. Firms that have an emission intensity that is above their target could use credits from previous years, or purchase credits from other firms that have a surplus. Firms could also acquire offset credits by purchasing emission reductions from activities that are not covered by the regulations (e.g. emissions from agriculture). Future linkages with emissions trading systems in the U.S., and possibly Mexico, will be explored. Further international linkages will also be explored over time.
