Emissions trading systems (ETS) are market-based approaches to controlling pollution by providing economic incentives for reducing the emissions of pollutants. In these systems, companies are given a limit on the amount of emissions they can produce, and they can trade allowances with other companies, allowing for flexibility in how they meet their regulatory requirements. This approach not only encourages innovation and cost-effective solutions to reduce emissions but also plays a vital role in global strategies to mitigate climate change.
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