Authored by Leo Pyman, TeamCain
The cap-and-trade system gives companies flexibility in planning their short, medium and long term investments. It lets companies buy emission allowances on the market until they are ready to bring their equipment up to date. Companies that have reduced their GHG emissions below the regulatory requirement could find themselves with an allocation of emission units and by selling those excess units, they could either recover part of their investments or use the proceeds to engage in further optimization.
