Jul 31, 2022
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Regarding the carbon fee or carbon tax, there are also many issues that need to be clarified. If you need it, you can click here first . Today, we will focus on cap emission trading. c7rwr1vwp8i26iyvu5a813u6p3t8ch Photo Credit: Reuters / Dazhi Image Under the cap-and-control emission trading mechanism, the government sets emission reduction targets, and further distributes the allowed emissions as a bargaining chip (carbon right) to the regulated; With these carbon rights as the target, popular database carbon trading can be carried out. Total cap emission trading is mandatory, and the regulated must achieve the assigned emission target, so the carbon rights generated under this mechanism are regarded as carbon rights under the mandatory mechanism. The market that circulates and trades mandatory carbon rights is called a regulated market. At the beginning of the implementation of the mechanism, in order to increase the acceptance, it is usually first to use a free method to allocate emission permits, and then gradually shift to a paid method (auction) to allocate them. That is to say, under this mechanism, the emission that really needs to be paid is the part that exceeds the emission allowance.