An opportunity to gain from emissions reduction plan

摘要

Carbon emissions trading has begun to gather real momentum in Europe over the past 12 to 14 months as a result of the introduction of the EU's Emissions Trading Scheme (ETS). The ETS is a legally binding cap-and-trade system designed and implemented to put EU member states on track to meet their Kyoto greenhouse gas emissions reduction targets. It sets a cap on the amount of carbon dioxide (CO_2) emissions allowed in member states, initially during the 2005-2007 period, thereby making CO_2 emissions a relatively precious commodity in a limited timeframe. Without prohibiting emissions beyond the set cap, it seeks to encourage compliance within it by penalising excess emissions and establishing a market in carbon credits.