What is emission trading?
Emissions Trading. The Protocol allows countries that have emission units to spare – emissions permitted them but not “used” – to sell this excess capacity to countries that are over their targets. This so-called “carbon market” is flexible and realistic. Countries not meeting their commitments will be able to “buy” compliance, but the price may be steep. The higher the cost, the more pressure they will feel to use energy more efficiently and to research and promote the development of alternative sources of energy that have low or no emissions. Some national registry systems under the Protocol have alrady been set up, as countries are eager to “bank” emissions reductions already accomplished. Smaller “carbon markets” are now being established by the EU and other groups of countries.
