Today’s Solutions: July 13, 2025

Thirteen years after Europe’s carbon market was invented, it looks as if it’s finally starting to do what it was meant to do: reduce carbon-dioxide emissions. Even though European Union policymakers are continuously increasing the cost of pollution, industry giants are not complaining because the carbon market provides more flexibility on how to comply with higher emissions rules than regulation or taxes would allow for. With emissions being contained and more than $38 billion going into the European carbon market each year, Europe is showing that carbon markets can be effective.

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