Kokonaispäästörajoitus

Kokonaispäästörajoitus, often translated as "cap and trade" or "emissions trading scheme," is an environmental policy tool designed to reduce pollution by setting a limit on the total amount of a pollutant that can be emitted. This limit, or "cap," is set by a regulatory body, such as a government. The cap is gradually lowered over time to ensure continuous reductions in emissions.

Within this capped system, entities responsible for emissions, such as industrial facilities, are issued or allocated a certain number of allowances, with each allowance representing the right to emit one unit of the pollutant. Companies that can reduce their emissions more cheaply than the market price of an allowance can sell their excess allowances to companies that find it more expensive to reduce their emissions. This creates a market for pollution allowances.

The core principle of kokonaispäästörajoitus is economic efficiency. By allowing companies to buy and sell allowances, the overall reduction in pollution is achieved at the lowest possible cost to the economy. Companies have an incentive to innovate and invest in cleaner technologies to reduce their emissions and potentially profit from selling surplus allowances. Conversely, companies that exceed their allowance limit must purchase more, making pollution more expensive for them.

This system provides certainty about the total amount of pollution reduction achieved, as the cap is fixed. However, the actual cost of emissions reduction can fluctuate depending on the market price of allowances. It is a widely used policy instrument for addressing greenhouse gas emissions, particularly carbon dioxide, in various regions worldwide.