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The idea is that polluters choose between investing in emission reductions or emission permits.
"A continuation of free emission permits for Poland's coal-reliant energy system would be a grave mistake.
We should also create an incentive for companies to limit emissions by letting them trade carbon emission permits.
Fortunately, there is good reason to believe the price of European emission permits will rise over time.
Carbon emission permits are essentially licenses to release greenhouse gases — the emissions that scientists have linked to global warming.
Critics say that when the trading system was put into place in 2005, too many emission permits were created.
This consumer-price rise is independent of how much or whether the power company paid anything for its emission permits.
Under its terms, the European commission approves national annual CO2 output limits within which "green" sectors can trade emission permits with companies emitting more CO2.
We know that such policies work: the U.S. "cap and trade" system of emission permits on sulfur dioxide has been highly successful at reducing acid rain.
To do this will require tradeoffs on how to use funds raised from the sale of greenhouse-gas emission permits to polluters.
Among the ploys: Enron was in favor of the Kyoto treaty, because it thought it could make money trading emission permits; see, environmentalism is the villain.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com