Under Phase 2 of the EUETS, which runs from 2008 to 2012, countries are allowed to auction their allowances, up to a limit of 10%.
Others contributed their allowances.
But passing grades will at least earn them their allowances.
(The £2.7bn cut people's tax bills by raising their allowances).
Efficient companies sold their allowances and were rewarded; inefficient companies were penalized.
Companies can trade their allowances, providing an incentive for them to reduce their emissions.
Companies that do not use all their allowances can sell their surplus to companies that need allowances.
Pool your resources: If co-workers aren't in the office, combining their allowances with yours can multiply your purchasing power.
Since firms must pay a price if they exceed their allowances, they have an incentive to cut emissions.
Asked if he would give up his own benefits, he replied: "I'm not asking them to give up their allowances".
For small firms the cost of analysing how to make money from their allowances could outweigh the benefits.
