|Policy status:||In Force|
|Policy Type:||Regulatory Instruments, Economic Instruments, Economic Instruments>Market-based instruments, Economic Instruments>Market-based instruments>GHG emissions trading|
|Climate Change Policy Targets:||Energy Sector, Industry, Transport|
|Agency:||Ministry of the Environment|
|Legal References:||Act No. 383/2012 Coll. on requirements of GHG allowance trading scheme|
|Climate Change Description:|
Emission trading is one of the tools to help improve the state of the environment at the least possible cost. The system works on the principle of reducing corporate costs of preventing environmental pollution, thus reducing total social costs. Each company that decides to reduce its emissions (be it under pressure from an authority such as the State, or voluntarily) incurs different costs related to the pollution reduction. Unlike emission limits etc., the trading system allows companies with marginal costs of pollution prevention above the market permit price to buy the permits from companies with lower pollution prevention costs, thus reducing their own pollution reduction costs.
Last modified: Mon, 08 Jun 2015 10:30:35 CEST