Carbon Emission Rights Sales

The market price arising from the purchase of carbon emission rights by corporations or organizations is determined by market principles. Carbon emission rights traded in the market are recognized and recorded by regulatory bodies, granting the right for additional carbon emissions. Thus, corporations or organizations emitting more than a certain amount of carbon must buy carbon emission rights according to their emissions, generating revenue from these sales.

The revenue generated contributes to funding for environmental protection and sustainable development, playing a crucial role in enhancing corporate image and implementing carbon-neutral strategies. The following chart describes the utilization of carbon emission rights sales revenue by different entities:

National or Local Governments

In some countries, revenue from carbon emission rights sales is used as national income. This revenue, returned to the treasury, is utilized as government budget for various national projects or public services. Particularly, many countries use the formed budget for climate change-related projects or specialized funds to achieve carbon neutrality.

Carbon Offset Projects

Some corporations invest the revenue generated from carbon emission rights sales directly into carbon offset projects. They also use it for various environmental initiatives like establishing renewable energy projects or designing carbon absorption systems as part of their ESG management practices.

Operation of Carbon Emission Regulatory Systems

Revenue from carbon emission rights sales is also used to operate carbon emission regulatory systems. This includes funding for agencies that manage and supervise carbon emissions and grant emission rights.

Environmental Protection and Climate Change Response Funds

Strategic fund allocation for environmental protection and climate change response is another key utilization of sales revenue. Such allocated funds are used for environmental conservation, development of carbon reduction technologies, and adaptation to climate change.