business isn t perfect polluters have to buy carbon credits one credit allows a company to emits a ton of c o two for an equivalent greenhouse gas some firms need several million of these certificates every year. to cut carbon emissions throughout the new presses has agreed to reduce the number of credits available by around two percent a year. there are various options open to those affected they can invest in climate friendly technology to reduce their emissions to permitted levels. or they purchase credits from another company which has already lowered its emissions and therefore has more certificates than it requires. there s already a burgeoning market for surplus credits which businesses are entitled to buy also as they see fit. emissions trading all cap and trade works on the principle of boosting plan of action at minimal cost. in practice
as they see fit. emissions trading all cap and trade works on the principle of boosting plot of action at minimal cost. practice however companies have more credits than they actually need. the ongoing surplus of certificates has been continually driving down their price for years now. to a level where the financial incentive for companies to invest in clean energy and reduce emissions is close to zero. well meaning sadly ineffective the environment is meant to be profiting from this at the end of the day and the transport and agricultural industries haven t even been factored into this then there are the new energy intensive technologies like bitcoin you may think it s all virtual but just one transaction uses as much power