China begun its bid to achieve carbon neutrality by 2060 in earnest with the launch of the Emission Trading Scheme (ETS) at the beginning of February.
It follows a process called "cap-and-trade," and is seen as an alternative to a carbon tax. The aim is that market forces will help reduce CO2 emissions – but how?
To emit one ton of carbon – about the amount produced during a one-way flight from Beijing to London for one person – businesses will need to purchase a carbon credit. If a company produces more carbon than it is permitted by the credits it has, it must buy more credits, while those that do not use their credits are allowed to sell them on to those who need them. Therefore big polluters are punished, while those cutting back are rewarded.
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