Guardian: Emissions trading scheme (ETS) The cap and trade scheme limits industrial emissions and forces companies to pay to pollute by buying permits for each tonne of carbon dioxide and other greenhouse gases. The permits are to be traded in an auction system. The new law revises the ETS which has been operating in embryo since 2005. This scheme is supposed to supply around half the greenhouse gas cuts. The draft exempts some sectors from paying on competition grounds. But Germany wants to …