All EU countries plus Iceland, Liechtenstein and Norway, have a shared EU Emissions Trading System. Allowance-based systems work where greenhouse gas emissions are regulated and the number of carbon allowances each entity, region, or country is allowed to emit is determined. After each year, a company must surrender enough allowances to cover all its emissions, otherwise heavy fines are imposed. If a entity reduces its emissions, it can keep the spare allowances to cover its future needs or sell them to another entity that is short of allowances.
It’s not easy to navigate through the climate friendly statements. We have therefore put together a simple glossary with the mostfrequently used words for your help. See it as a guide to help you navigate and find your climate friendly path.