When an entity's net emissions are greater than the permits they hold,at the end of the year they may:

Question

Quizplus · Accepted Answer

If an entity's net emissions are greater than the permits they hold, they have three options to comply with regulations. First, they may purchase approved carbon offsets, which are projects that reduce greenhouse gas emissions, to offset their excess emissions. Second, they may purchase unused emission permits from other entities, which allow them to emit more greenhouse gases. Finally, they may have to pay an emissions fee to the government, which is a penalty for exceeding the permitted emission levels. Thus, all of the above options - A, B, and C - are valid choices for entities to consider when they exceed their permitted emissions.

When an Entity's Net Emissions Are Greater Than the Permits