carbon trading

Pollution permit exchange

Carbon trading is a market-based system for reducing greenhouse gas emissions.

Governments or regulators set a cap on total emissions, then issue permits that companies can buy and sell.

Those who pollute less can sell unused permits to heavier polluters: The power company offset its emissions through carbon trading.

The approach treats pollution as a commodity, creating financial incentives for cleaner operations.

mechanism

cap-and-trade

Market-based pollution control

permits · quotas · certificates · allocation · auction · baseline · benchmarking · compliance · verification · monitoring

market

exchange

Mutual giving and receiving

brokers · speculation · arbitrage · volatility · liquidity · portfolio · hedge · commodities · indices · price floor

sustainability

renewable energy

Self-replenishing natural power

climate action · sustainable development · energy transition · green investment · ESG · corporate responsibility · mitigation · adaptation · green bonds · divestment

emissions

CO2

Carbon dioxide formula

pollution · fossil fuels · combustion · industrial emissions · exhaust · sequestration · deforestation · reforestation · afforestation · emission standards

Categories
Opposites
market mechanism vs. regulatory mandate

carbon tradingemissions standards

Legal limits on pollutants released

performance standards · zoning restrictions

carbon pricing approach

carbon tradingcarbon tax

Levy on fuel combustion

direct taxation · emissions tax · Pigouvian tax · fuel tax · environmental tax

climate action vs. inaction

carbon tradingclimate denial

Rejecting scientific consensus on warming

business as usual

Family

trading, carbon, carbonated, carbonation, carbonate, carbonize, carbonic, carbons, carboxyl

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G