How Will the Oil and Gas Market Shape Up in 2021 and Beyond?

  • Carbon tax: a fixed tax rate is applied to all CO2 emissions (e.g., oil-/gas-fired power generation, flared gas). Specific projects could be granted an emissions allowance so that only emissions more than the allowance are subject to the tax
  • Emissions trading scheme (ETS): the government grants or sells emission credits, and producers must have enough credits to cover their emissions each year. This is also known as a “cap and trade” scheme, as there is a cap on the total number of credits available in any period. The cap declines over time, consistent with the economy’s or industry’s emissions targets

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Acuity Knowledge Partners

Acuity Knowledge Partners

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/