How did Europe's Emissions Trading Scheme work?
A)European countries banned trade with firms that polluted in excess of their allowances.
B)European countries traded new antipollution technology to firms in developing countries that committed to reducing carbon emissions.
C)Firms were given allowances for greenhouse gas emissions that they could sell or buy depending on their own efficiency.
D)Firms in Europe established their own regulations to limit carbon emissions.
E)European governments gave tax credits to firms that reduced their carbon emissions.

Question

Quizplus · Accepted Answer

The European Union Emissions Trading Scheme (EU ETS) was a cap-and-trade system that allocated allowances for greenhouse gas (GHG) emissions to participating firms. Each allowance corresponded to one tonne of CO2-equivalent emissions. Firms could sell excess allowances or buy more if they needed them to comply with their yearly limits. The goal was to put a price on carbon emissions and incentivize firms to reduce their environmental footprint. The scheme applied to power plants, manufacturing facilities, and other large emitters across the EU.

How Did Europe's Emissions Trading Scheme Work