Emissions Trading System
The Energy White Paper, Powering our Net Zero Future (CP 337), published in December 2020 by HM Government, defines the Emissions Trading System (ETS) as: ‘A method of putting a price on emissions. A cap is set on the total amount of certain greenhouse gases that can be emitted by participants. The cap is reduced over time so that total emissions fall. Within the cap, companies receive or buy emission allowances, which they can trade with one another as needed.’
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