EU ETS CO2 emissions seen rising 0.5% in 2017

Compared to 2016, the total carbon emissions from the factories under the European Union Emissions Trading System rose to 1,757.3 mt. This accounts for a 0.5% increase in total carbon emissions. Most of these factories under control of the EU ETS cooperate using a cap-and-trade system. This system was intended to create a continuous lowering of carbon emissions across Europe, but instead did the opposite in 2017. I found this article interesting because the cap-and-trade system came up in our last chapter we studied. Just as we discussed in class, this system can actually raise carbon emissions, especially if the industrial gains from just a few industries outpace the losses from most other industries.



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