What is the emission market?

The

emissions market is part of an open market that trades credits or vouchers for pollutants, usually pollutants such as greenhouse gases. Many nations around the world have introduced emissions trading as a method for reducing overall pollution and solving problems such as global warming. Several nations hope to create a global emission market and acknowledge the fact that pollutants affect the world on a global scale, not just individual nations.

There are several ways to organize the emission market. In general, most people prefer what is called Cap and Trade System. In the cap and trade market, the government determines the total "ceiling" of permissible emissions of various pollutants and then basically issues companies with credits; The loan amount is based on the size of the company, the industry in which it works and similar factors. If the company issues less pollutants than permitted under its ceiling, it can sell or business credits withE companies that are afraid of their caps. Many economists support this system because they reward good actions and at the same time differ and obviously penalize bad. In this sense, the emissions market encourages all companies to be more environmentally friendly, because if society can achieve emissions under its base, it can be able to benefit from its unused credits.

In a different system known as the basic and credit system, companies are assigned basic lines of pollution than CAPS. If the company exceeds the baseline, it is penalized, while companies falling under their baseline receive credits. This system tends to be criticized because, unlike the CAP and Credit system, it does not check the overall emissions by introducing a nationwide CAP; Companies can basically buy the right to excessively pollute.

Establishment of the EMIS marketEMI is a strong economic motivation. As global awareness of pollution increased at the beginning of the 21st century, concepts such as emission markets, began to gain popularity because people realized that they had to act quickly to stop pollution. By dealing with the problems with measures designed to reduce overall pollution, especially greenhouse gas emissions, they hope that they will retain the world for future generations.