this post was submitted on 30 Jan 2025
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They are emissions credits. Every company receives some amount of "CO2 emission credits" from the government. These allow you to emit a certain amount of carbon dioxide. If you don't emit all the CO2 that your credits allow, you can sell those credits to other companies that need more than the government gives them.
The idea is to put a total limit on the amount of emissions in the country, while letting the market figure out where it makes most sense economically to invest in emission reduction.
Tesla makes only EV cars and so it doesn't need all the credits a typical gasoline car company would receive. So they sell them.
"Tesla makes only EV cars and so it doesn't need all the credits a typical gasoline car company would receive. So they sell them."
Which means the system isn't working. Surplus credits should come from improved efficiencies, not excessive allotment.
Total number of credit goes down over time. That mechanism ensures an adapt, die or emigrate pressure for large polluters, and a financial stimulus for small-polluters.