Emissions trading schemes rely heavily on self-monitoring, raising concerns about enforcement and accountability.
This article talks about how companies trading emission rights in the EU are monitored. The government makes sure firms follow rules about emissions by self-monitoring and verifying their own data. With emissions trading, businesses have to buy and use emission rights. This encourages them to cut down on emissions, depending on the cost of these rights. Governments use inspections to ensure companies follow the rules. In emissions trading, inspections focus more on checking the accuracy of self-monitoring activities. The EU scheme includes verifiers to help with this, which is different and brings up new questions.