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.
Market-based pollution control
- allowancesPermitted amounts or stipends
- creditsUnits toward graduation
- offsetsCounteracts to balance
- permitsGrants formal authorization
quotas · certificates · allocation · auction · baseline · benchmarking · compliance · verification
Mutual giving and receiving
- futuresContracts for future delivery
- derivativesThings derived from another
- spot priceCurrent trading value
- brokersTransaction intermediaries
speculation · arbitrage · volatility · liquidity · portfolio · hedge · commodities · indices
Self-replenishing natural power
- clean technologyEnvironmentally conscious industrial solutions
- net zeroBalanced emissions state
- decarbonizationEliminating fossil fuel emissions
- climate actionMeasures addressing atmospheric change
sustainable development · energy transition · green investment · ESG · corporate responsibility · mitigation · adaptation · green bonds
Carbon dioxide formula
- greenhouse gasesEmissions that trap heat
- methaneSimplest alkane fuel
- nitrous oxideAnesthetic inhalant causing euphoria
- pollutionEnvironmental harm from waste
fossil fuels · combustion · industrial emissions · exhaust · sequestration · deforestation · reforestation · afforestation
cap-and-trade
Market-based pollution control
- allowancesPermitted amounts or stipends
- creditsUnits toward graduation
- offsetsCounteracts to balance
permits · quotas · certificates · allocation · auction · baseline · benchmarking · compliance · verification · monitoring
exchange
Mutual giving and receiving
- futuresContracts for future delivery
- derivativesThings derived from another
- spot priceCurrent trading value
brokers · speculation · arbitrage · volatility · liquidity · portfolio · hedge · commodities · indices · price floor
renewable energy
Self-replenishing natural power
- clean technologyEnvironmentally conscious industrial solutions
- net zeroBalanced emissions state
- decarbonizationEliminating fossil fuel emissions
climate action · sustainable development · energy transition · green investment · ESG · corporate responsibility · mitigation · adaptation · green bonds · divestment
CO2
Carbon dioxide formula
- greenhouse gasesEmissions that trap heat
- methaneSimplest alkane fuel
- nitrous oxideAnesthetic inhalant causing euphoria
pollution · fossil fuels · combustion · industrial emissions · exhaust · sequestration · deforestation · reforestation · afforestation · emission standards
- Energy Lawenergy market, EEG, electricity supply, power supply, market regulation
- sustainabilityreduce, reuse, recycle, sustainable yield, recycling programs
- climate policyemissions standards, cap and trade, net zero, climate treaty, Paris Agreement
- Carbon ManagementCCS, CDR, biochar, sequestration, reforestation
- carbon marketsallowances, cap and trade, offsets
- environmental regulationClean Air Act, Clean Water Act, EPA, emissions standards, pollution control
carbon tradingemissions standards
Legal limits on pollutants released
carbon tradingcarbon tax
Levy on fuel combustion
direct taxation · emissions tax · Pigouvian tax · fuel tax · environmental tax
trading, carbon, carbonated, carbonation, carbonate, carbonize, carbonic, carbons, carboxyl