carbon market
Pollution permit exchange
A carbon market is a trading system where companies and governments buy and sell permits to emit carbon dioxide or credits for carbon reduction.
The idea is to put a price on pollution—those who emit less can sell their unused allowances to heavier polluters: The European Union operates the world's largest carbon market.
Cap-and-trade systems set overall emission limits, then let market forces distribute the cost of meeting them.
Market-based pollution control
- cap and tradeLimits plus tradable allowances
- allowancesPermitted amounts or stipends
- permitsGrants formal authorization
- quotasMandated numerical limits
auction · allocation · exchange · brokers · futures · spot price · liquidity · volatility
Counteracts to balance
- certificatesOfficial proof documents
- permanenceQuality of lasting indefinitely
- leakageUnintended fluid escape
- retirementLeaving the workforce permanently
Substances released into air
- greenhouse gasesEmissions that trap heat
- CO2Carbon dioxide formula
- methaneSimplest alkane fuel
- decarbonizationEliminating fossil fuel emissions
Multinational emissions reduction treaty
- Paris AgreementGlobal warming limitation accord
- climate policyLaws governing atmospheric protection
- environmental policyRules managing human-nature interaction
- international cooperationCountries jointly addressing challenges
Adhering to requirements
- verificationProving something accurate
- validationConfirming truth or accuracy
- registryOfficial record of entries
- baselineStandard for comparison
benchmarking · monitoring · reporting · penalties · enforcement · inventory · accreditation · standards
emissions trading
Market-based pollution control
- cap and tradeLimits plus tradable allowances
- allowancesPermitted amounts or stipends
- permitsGrants formal authorization
quotas · auction · allocation · exchange · brokers · futures · spot price · liquidity · volatility · speculation
offsets
Counteracts to balance
- certificatesOfficial proof documents
- permanenceQuality of lasting indefinitely
- leakageUnintended fluid escape
emissions
Substances released into air
- greenhouse gasesEmissions that trap heat
- CO2Carbon dioxide formula
- methaneSimplest alkane fuel
decarbonization · mitigation · net zero · abatement · sequestration
Kyoto Protocol
Multinational emissions reduction treaty
- Paris AgreementGlobal warming limitation accord
- climate policyLaws governing atmospheric protection
- environmental policyRules managing human-nature interaction
compliance
Adhering to requirements
- verificationProving something accurate
- validationConfirming truth or accuracy
- registryOfficial record of entries
baseline · benchmarking · monitoring · reporting · penalties · enforcement · inventory · accreditation · standards · protocols
- Carbon ManagementCCS, CDR, biochar, sequestration, reforestation
- carbon tradingemissions trading, cap-and-trade, credits, offsets, allowances
- EU regulationsGDPR, RED, free movement, data protection, consumer rights
- marketsbazaar, souk, vendors, food stalls, Grand Bazaar
carbon marketemissions standards
Legal limits on pollutants released
performance standards · emission limits · laissez-faire · prohibition
carbon, market, carbons, carbonize, carbonization, carbonate, carbonated, carbonation, carbohydrate