1. The warming of the planet is caused by greenhouse gas emissions
Climate change is already affecting us. The burning of fossil fuels, deforestation, and industrial livestock farming is contributing to an increase in greenhouse gases in the atmosphere, leading to a warmer planet and an unstable climate.
To prevent the most severe consequences of global climate change, we must fully decarbonize our economies within the next 30 years.
2. The EU and the Emissions Trading System
In 2005, the EU implemented an emission allowance system as part of its efforts to decrease greenhouse gas emissions. Companies operating in the sectors with the biggest climate impact must measure their emissions and surrender the number of allowances corresponding to their actual emissions once a year. Under this system, one allowance equates to one metric ton of greenhouse gases.
3. Reducing the number of emission allowances
Each year, the EU releases a predetermined amount of allowances into circulation. The volume of allowances issued decreases each year and is expected to reach zero over the years, which guarantees a proportionate reduction in harmful emissions.
4. 100 CO2IN is equivalent to 1 emission allowance
CO2IN creates carbon credits backed by emission allowances, making this market accessible to ordinary companies and individuals and certifies them according to ISO 14064-2 as carbon reductions compatible with non-financial accounting.
Buying 100 CO2INs will reduce the amount of greenhouse gases that would otherwise be released into the atmosphere by 1 tonne.
5. What happens to the money collected from allowances?
The money from emission allowances goes either to individual EU countries or to the EU's Innovation or Modernisation Fund, and is largely used for decarbonisation projects in areas such as housing or heating, or to mitigate the social impacts of the energy transition.
Buying CO2IN not only has an immediate impact on reducing emissions, but it also aids in funding projects focused on reducing emissions in other areas.
The subsequent graph illustrates the effectiveness of the EU's emissions trading system in curtailing greenhouse gas emissions. However, the current rate of reduction is not adequate to circumvent the most devastating consequences of climate change, nor to maintain global warming within the bounds stipulated by the Paris Climate Agreement and the scientific community's consensus.