Päästökattoa

Päästökattoa, or emissions cap, is a regulatory mechanism designed to limit the total amount of greenhouse gases or other pollutants that can be released into the atmosphere. This system is often implemented through a cap-and-trade framework. In such a system, a limit, or cap, is set on the total amount of emissions allowed. This total amount is then divided into tradable emission allowances, or permits.

Companies covered by the cap are issued or must purchase these allowances. If a company emits less than its allocated allowances, it can sell its surplus to companies that have exceeded their limits. This creates a financial incentive for companies to reduce their emissions, as they can profit from doing so. Conversely, companies that emit more than their allowances must buy additional allowances, incurring a cost.

The primary goal of an emissions cap is to reduce overall pollution levels in an economically efficient manner. By putting a price on emissions and allowing for trading, the market can determine the most cost-effective ways to achieve emission reductions. The cap is typically lowered over time, ensuring a gradual but steady decrease in total emissions. This approach is a key tool in climate change mitigation strategies, aiming to control the concentration of greenhouse gases in the atmosphere. The effectiveness of a päästökattoa system depends on the stringency of the cap, the number of entities covered, and the design of the trading mechanism.