In emissions trading, companies at the end of each year at least as much 'emission' surrender if their emissions that year actually was. They can have their rights among each other. On the CO2 or NOx is thus a price tag. The award encourages companies to invest in cleaner production.
Buy additional allowances and sell
Each allowance gives a company the "right" to 1 tonne of CO2 or NOx emissions. The government takes these allowances on the market. The government determines the emission per period for all participants. Then, each participating company a year get some free allowances, the company may use. With CO2 emissions rights, the government also sells at auction.


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