When an Entity's Net Emissions Are Less Than the Permits

question 21

Multiple Choice

When an entity's net emissions are less than the permits they hold,at the end of the year they:

• A) must forfeit the excess credits
• B) can sell the excess credits to other entities
• C) can bank the excess credits for future use
• D) B and C above

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Definitions:

Fischer Esterification

A chemical reaction process that forms an ester from an alcohol and a carboxylic acid in the presence of an acid catalyst.

Acetic Acid

A simple carboxylic acid known as the main component of vinegar, widely used in the food industry and chemical manufacturing.

Methanol

A simple alcohol with the formula CH3OH, used as a solvent, antifreeze, fuel, and as feedstock for chemical synthesis.

Reagent

A substance or compound added to a system to cause a chemical reaction or test for the presence of another substance.