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Emissions trading

Emissions trading is a market-based instrument that serves to protect the climate. Installations releasing greenhouse gases into the atmosphere require allowances. Those that reduce their greenhouse gas emissions can sell the corresponding surplus allowances. Emissions trading is therefore trade in allowances to emit greenhouse gases. It is one of the so-called Kyoto Mechanisms.

The introduction of the market stability reserve was an important first step.

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Barbara Hendricks Federal Environment Minister <b><i>The introduction of the market stability reserve was an important first step.</i></b>