🛢💸 The real deal about Carbon Pricing: Difference between revisions

🛢💸 The real deal about Carbon Pricing (view source)

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 https://www.i4ce.org/wp-core/wp-content/uploads/2019/05/i4ce-PrixCarbon-VA.pdf</ref>, meaning that citizens and companies running cars, trucks, machines, etc. on fossil fuels would get it at an increasing price<ref>Only if the ressource price of extraction from the soil doesn’t drop for some reason: the price could stagnate or even decrease, regardless of taxes.</ref> — the same way it was done for tobacco in numerous countries. It will discourage fossil fuel use in favour of less emitting energy sources such as wind, solar, geothermal or nuclear fission; by making them more competitive.
 #<u>The carbon emission trading system</u>, on the other hand, is trickier to get: a given government will first estimate the carbon emissions (in tons) of the whole emitting industries active in its territory during a given time (a year). Based on those datas, the government can create an Emissions Trading Scheme (ETS) by 2 ways:
-**The government allocates each company with an annual emissions permit, where the sum of all permits account for less carbon emissions than the previous year, in order to reach their decreasing goals, year after year. In that case, what is call an allowance (permit to emit) would be freely distributed to companies, depending on their previous year emissions. If they decide to emit more that they were allowed to, they can buy allowances on the carbon market. Those allowances will be traded with companies who managed to lower emissions even more than the government expected.<ref>But not only: the asset system makes it possible to create allowances that were not distributed by the government. We will come back to it later.</ref>
+*The government allocates each company with an annual emissions permit, where the sum of all permits account for less carbon emissions than the previous year, in order to reach their decreasing goals, year after year. In that case, what is call an allowance (permit to emit) would be freely distributed to companies, depending on their previous year emissions. If they decide to emit more that they were allowed to, they can buy allowances on the carbon market. Those allowances will be traded with companies who managed to lower emissions even more than the government expected.<ref>But not only: the asset system makes it possible to create allowances that were not distributed by the government. We will come back to it later.</ref>
-**We start with this same system of an allowance market which “size” is decided every year by the government, depending on its emissions decrease goals. However, the allowances are auctioned every year on a given platform. Allowances prices varies greatly depending on the market<ref>In 2019, the price of a ton of carbon traded was of the following amount for those countries:
+*We start with this same system of an allowance market which “size” is decided every year by the government, depending on its emissions decrease goals. However, the allowances are auctioned every year on a given platform. Allowances prices varies greatly depending on the market<ref>In 2019, the price of a ton of carbon traded was of the following amount for those countries:
 *17$/tCO2 for the European Union market.
 *8,9$/tCO2 for Beijing pilot ETS.