What is carbon and trade?

carbon carbon and trade is a system that governments can try to reduce carbon emissions produced in their respective countries. It sets the overall objective to reduce certain emissions, especially carbon, by allowing individual companies to emit so much in a given year. Those who go beyond this amount may be fined or face other government -based sanctions, but they could also buy credits from others who do not use their allocation. Trading creates an opportunity to avoid higher government fines, but still allows the government to meet its goal of reducing total carbon emissions. It is assumed that companies could put their credits on sale to a centralized system where they would almost become commodities. The system can work similarly to shares or commodity market. Another is a carbon tax that may or may not allow a certain amount of emissions before the tax is imposed. Politicians who do not want to be accused of increasing taxes or causing an increase in energy accounts may prefer the method uMelt and trade.

Advantages for carbon and trading system are numerous. First, the government provides a realistic goal of how many emissions to expect on the basis of credits issued. Secondly, it provides other income flow to the companies if they can be more efficient. Thirdly, they give these companies more than their assignment.

The carbon and trading system also has certain critics. Some believe that traders or speculators are interested in credits for emissions purposes can simply sell them for a higher value that inflates the market. It is also said that the system naturally creates winners and losers, which will be a financial advantage for some and the burden for others, and the costs will eventually reach consumer, especially in the form of higher energy accounts.

supporters and opponents point to the carbon and trading system in Europe. For example, a message from the Massachusetts Technology Institute in 2008 described it as Ú šeA rush without any major problems, but a competing enterprise institute came to the opposite conclusion. As with all political questions, success or lack often depends on the individual's own view.