Its been criticised for having very generous national allocation plans and for excluding important sectors e.g. aviation, agriculture and transport. Companies who produce low emissions will have very little incentive to lower their current emissions further. Selling their 'spare' capacity would only provide some income but its unlikely to encourage them to be cleaner. Larger communities who pollute more can use their wealth and buying power to source carbon and no real incentive to reduce their emissions. Claims that some companies could be operating fraudulently as cheating is difficult to prove.