The Act aims to limit emissions of GHGs in a cost-effective manner by means of a system involving the duty to surrender GHG emission allowances and freely transferable emission allowances.
 
 It establishes government authority over the number of allowances to be allocated and which of these allowances will be issued free of charge. It regulates reporting and control related to emissions and allowances and sets out penal measures for those operators not complying with reporting obligations.
 
 It authorises the Norwegian Emissions Trading Registry to contain information on the allocation, issue, holding, transfer, surrender and cancellation of allowances. The pollution control authorities will control and verify the reports on GHG emissions submitted by each operator.