This video by the German Emissions Trading Authority (DEHSt) at the German Environment Agency (Umweltbundesamt) explains how the ETS works in practice.
ETS in practice: A short introduction
Climate change can be felt already. The consequences of global warming include ever new heat records, heavy rains, and floods.
In order to protect the climate by reducing GHG emissions, the European Union introduced an ETS in 2005. The ETS is a market mechanism that creates incentives for companies to burn less coal and gas and thus reduce their climate-damaging emissions by setting a cap for emissions and providing tradable allowances.
Since 2013, China has introduced pilot ETS in Beijing, Shanghai, Tianjin, Chongqing, and Shenzhen, as well as in Guangdong, Hubei and Fujian province. China’s national ETS will become the largest system in the world.
This video by the German Emissions Trading Authority (DEHSt) at the German Environment Agency (Umweltbundesamt) explains how the ETS works in practice.
The amendment to the Montreal Protocol, which was first signed in October 2016 and regulates the phase-down of hydrofluorocarbons, has become effective in China as of 15 September 2021.
The agency requested companies from six sectors to submit GHG emissions data including N2O and HFC-23 in 2020.
Carbon sinks might be traded as offsets in the national ETS.
