How does emissions trading help stop climate change?
Industry in the EU is only allowed to emit a certain amount of CO2 . This amount of CO2 is capped by the European Union Emissions Trading System (EU ETS).
For example, all coal-fired power plants and steel producers must purchase emission allowances in order to be permitted to emit CO2 .
These emission allowances are auctioned off by the government. One emission allowance permits the emission of one ton of CO2 . There is only a limited number of emission allowances. Furthermore, the EU reduces the amount of available emission allowances each year. This type of system is known as ‘cap and trade.’
Companies are allowed to trade emission allowances they have already purchased but not used. At ForTomorrow, we purchase European emission allowances and set them aside unused. As a result, major emitters can no longer use these emission allowances.
This reduces the amount of CO2 they are allowed to emit and, consequently, total CO2 emissions. This has a twofold effect: The proceeds from the auction of emission allowances flow into the government’s climate and transformation funds. The government uses this money to promote climate protection, renewable energy, and the transformation of the economy.
Advance climate protection What are the benefits of carbon offsetting through the cancellation of emission rights?
Local climate protection in Europe
When you purchase and retire EU emission allowances with us, you reduce CO2 emissions from European industry in Europe. You’ll have a unique opportunity to drive the energy transition in Europe and ensure that renewable technologies gain traction. You can work with us to offset CO2 emissions right where they’re generated. This way, you’ll actively help shape the path to a sustainable future. With ForTomorrow, you can offset CO2 as an individual or through your business while accelerating the development of a carbon-free economy.
The mandatory market
Most offset projects are part of the voluntary market, which means that there are no laws, regulations or government orders in place. EU emissions trading is a mandatory market, backed by the European Union. If you offset carbon by buying emission rights from the EU Emissions Trading System, a reduction in the amount of CO2 emissions in Europe would be guaranteed. All major CO2 emitters are forced to buy emission rights via emissions trading in order to be allowed to emit CO2 . Every year, the EU reduces the number of emission rights that can be purchased. Carbon emissions must drop at the same rate. We are using this mechanism to accelerate the energy transition in Europe.
The importance of additionality
Additionality ensures that a carbon offset actually serves climate protection. Only offsetting projects that are directly funded by your donations and complement existing climate protection are working. Example: If a hydropower plant is already self-financing, but still sells climate protection certificates that you can use to offset the carbon emissions, then this is not an additional benefit for climate protection. The power plant would run even without your donation. So it’s not extracting additional CO2 from the air.
Only with your help can we buy away and cancel emission rights from industrial polluters in Europe. If you didn’t help us buy up these rights, they would end up being used by industry polluters to emit CO2 . The cancellation of emission rights is therefore an additional climate protection measure.
Is the EU Emissions Trading System really working?
EU emissions trading has been proven to reduce CO2 emissions. The system has been in operation since 2005 and has already cut emissions by half for coal power plants, industry facilities and flights.
The system works excellently, but it is too slow. Through EU emissions trading, Europe is to achieve climate neutrality by 2050. Far too late to contain the consequences of human-made climate change.
The EU Emissions Trading System reduces CO2 emissions within the EU through the cap and trade system.
By buying EU emission rights away from industry and cancelling them, we can boost the effectiveness of the system. With us, you have the opportunity to offset your carbon emissions and at the same time drive the energy transition of the European economy. Each emission right we cancel equals a reduction of one tonne of CO2 emissions in the EU.