päästökauppaan

Päästökauppaan refers to a system for trading emission allowances, primarily used in the European Union. It is a market-based instrument designed to reduce greenhouse gas emissions cost-effectively. The core principle is that entities covered by the system, such as industrial installations and airlines, are allocated or can purchase emission allowances. Each allowance permits the holder to emit one tonne of carbon dioxide equivalent.

The total number of allowances is capped, and this cap is gradually reduced over time, thereby driving down emissions. Companies that reduce their emissions below their allocated allowances can sell their surplus allowances on the market. Conversely, companies that emit more than their allowances must purchase additional ones. This creates a financial incentive to invest in cleaner technologies and practices.

The EU Emissions Trading System (EU ETS) is the largest and most well-known example of päästökauppaan. It covers around 40% of the EU's greenhouse gas emissions and has been in operation since 2005. The system has been expanded and reformed over the years to cover more sectors and increase its ambition. Other countries and regions also have similar emissions trading schemes. The effectiveness of päästökauppaan is evaluated based on its ability to achieve emission reduction targets while minimizing economic impact and ensuring competitiveness.