Emissions trading schemes (ETS) incentivize polluters to reduce CO2 emissions through carbon pricing. ETS in China, South- Korea, Switzerland, the UK and California tend to target energy-intensive industries and can cover up to 80% of all greenhouse gas emissions. Most ETS, excluding South Korea, make polluters pay for the majority of their emissions by obliging them to buy a permit (rights) to emit more CO2 than the baseline, thereby encouraging green investment.