emissions trading
Pollution permit exchange
Emissions trading is a market-based system for controlling pollution, particularly greenhouse gases.
Governments set a cap on total emissions, then issue permits that companies can buy and sell.
Those who reduce pollution efficiently can sell unused permits to heavier polluters: The power company offset its coal plant emissions through carbon trading.
Also called cap-and-trade.
- carbon creditsTradeable pollution permits
- carbon offsetPurchased reduction equivalent
- allowancesPermitted amounts or stipends
- global warmingRising planetary temperatures
- cap and tradeLimits plus tradable allowances
buy and sell · Kyoto Protocol · renewable energy · decarbonization · green economy · offsets · greenhouse gases · energy policy · CO2 · smoke stacks · carbon sequestration · permits · acid rain · Paris Agreement · climate change mitigation · climate action · net zero · industry
emissions tradingderegulation
Removing governmental business restrictions
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