NGD Whitepaper
  • EXECUTIVE SUMMARY
  • MARKET ANALYSIS
  • PROBLEM STATEMENT
    • Why are conventional landfills a problem?
    • What are the time frames and costs associated with conventional landfills?
    • How are methane emissions different from CO2 emissions?
  • OUR SOLUTION
    • Landfill Modernization Through ALBS
    • Regenerative Finance
  • CARBON CREDIT MARKET
    • Voluntary Carbon Markets
    • Mandatory Carbon Markets
    • Kyoto Protocol
    • Emissions Trading System (ETS)
  • BUSINESS MODEL & ECOSYSTEM
    • How are carbon credits an inseparable part of the NGD business model?
    • How does New Green Deal Corporation help children save for their higher education?
    • The NGDE Ecosystem
    • The NGDF Ecosystem
    • NET0AIR
    • COMMUNITIES FOR EDUCATION
  • GO-TO-MARKET STRATEGY
    • Resurgence Force Earth
    • Social Media Marketing
    • TV and Radio Advertisements
    • Partnerships with School Boards
    • Partnerships with Landfill and Waste Management Establishments
    • Community Organization Platforms
  • TIMELINE
  • PRODUCT ROADMAP
  • SUMMARY
  • DISCLAIMER
  • REFERENCES
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  1. CARBON CREDIT MARKET

Emissions Trading System (ETS)

What is the Emissions Trading System (ETS)?

Emission trading systems (ETS) or cap-and-trade systems, cap GHG emissions to achieve the climate goals of a particular jurisdiction. Carbon allowances equal to the emissions cap are then freely allocated or auctioned to emitting entities who may then trade these allowances between them with a price determined by supply and demand.

Allowance trading is a key benefit of ETS as it incentivizes least-cost abatement, as firms with a low abatement cost will abate and sell their allowances to firms with a higher abatement cost. An ETS also often allows firms to “bank” allowances and hold them for use in future compliance years.

Emitters with an insufficient number of allowances required for their industry at the end of the reporting period incur penalties.

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Last updated 2 years ago