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How does a country with carbon emission permits ensure that companies do not produce more carbon emission than stated on the permits?

Specifically how does the government check how much CO2 a company produces? (assuming companies have incentives to commit fraud or report inaccurate numbers).

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    Why would this be so different from the government checking whether companies cheat on their tax returns?
    – quarague
    Jul 20 at 9:53
  • I am not entirely sure about the difference and this is a great question. I wonder about that too.
    – Snowflake
    Jul 25 at 17:02

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