it's an economic incentive for manufacturers to sell more EVs (they don't want to pay fines or pooled carbon credits)
it's a blunt and unfair instrument (e.g. Tesla makes huge amount of $ for doing fuck all as they have no legacy car infrastructure and workforce that needs to be maintained)
Since the number of carbon credits decreases every year they will become more and more expensive, thus making companies that innovate and emit less more and more competitive. This means that there is a market incentive for reducing your emissions.
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it's a blunt and unfair instrument (e.g. Tesla makes huge amount of $ for doing fuck all as they have no legacy car infrastructure and workforce that needs to be maintained)