Dr. John Curtis:

Carbon credits have a value, so if a company does not have credits, it ends up buying them.

In a way, I supposed, this gives companies permission to pollute in the short term. However, that policy, as Professor FitzGerald stated, has not been successful. The idea of that envelop of carbon credits has been diminishing and is diminishing further . It was like our proposal for the carbon tax, which was to give a long-term vision of when the credits would decline. In other words, a series of increases in carbon tax are announced in order to allow households to adjust behaviour. In addition, it is also announced that carbon credits for industry are going to decrease. The idea was to encourage companies to operate in a less carbon-intensive way.