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| Home » Carbon management » Tradable Energy Quotas (TEQs)
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Tradable Energy Quotas (TEQs) |
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Tradable Energy Quota or TEQ is a method for reducing dependence on fossil fuels. It also ensures that countries follow the emission guidelines and thus address issues related to climate change and resource reduction.
TEQ’s is used to deal with two problems, one is climate change and the other is reduced supply of fossil fuels. It is an energy distribution mechanism which allows countries to reduce production of greenhouse gases, ensure controlled usage of oil, coal and gas. This allowance also assures that everybody has equal access to energy resources in the world.
Measured in units, Tradable Energy Quotas (TEQ’s) is a national scheme which ensures that nations are able to keep their commitment of reducing carbon emission. The government of a country is also bound by TEQ’s.
TEQ’s units are available in the market. A TEQ Budget determines the numbers of units that will be made available in the market. The budget is determined by the Energy Policy Committee.
Adults, industries as well as the government are entitled to a certain number of units of TEQ’s. In case of less usage of assigned units, you can sell the surplus in the market. If you happen to use more units, than assigned, then you can buy them also from the market.
Every time you buy any energy resource, like petrol or electricity, then the corresponding number of units are deducted from your TEQ’s account. By going for Tradable Energy Quotas, countries can control their energy consumption and thus eventually put a check on global warming.
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