NewzThe Emissions Trading System (ETS) is a regulatory mechanism designed to reduce carbon dioxide emissions by establishing a maximum limit on total output. This cap is progressively lowered over time to ensure a consistent decrease in industrial pollution.
The system operates on the 'polluter pays' principle, requiring entities to account for their environmental impact. By creating a market-based constraint on emissions, the mechanism aims to incentivize cleaner practices and align industrial activity with climate targets.
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