What are the current regulations on carbon offsets?

What are the current regulations on carbon offsets?

Current regulations on carbon offsets vary by country. In the U.S., the California Air Resources Board oversees the cap-and-trade program, while the EU has its own Emissions Trading System. Would you like details on a specific region?

Yes, can you tell me more about the EU's Emissions Trading System?

The EU Emissions Trading System (ETS) is a key tool for reducing greenhouse gas emissions. It sets a cap on emissions from power plants and factories, allowing companies to buy and sell allowances. This market-driven approach incentivizes reductions where they are most cost-effective.

How do companies participate in this system?

Companies participate by obtaining emissions allowances, which they can buy at auction or from other companies. They must monitor and report their emissions annually to ensure compliance with the cap.

What happens if a company exceeds its emissions allowance?

If a company exceeds its emissions allowance, it faces penalties, including fines and the requirement to purchase additional allowances to cover the excess emissions.