• sugar_in_your_tea@sh.itjust.works
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    1 year ago

    There are caps though. My understanding is that companies get X credits, and they can sell any they don’t need to other companies, and X reduces over time. AFAIK, companies don’t create new credits, they merely trade them on the market as a finite resource.

    I assume if you go over your carbon allotment, you pay a hefty fine.

    If the government wants less carbon emissions, it reduces the number of credits available on the market or increases to tax credit for unused credits.