The buying and selling of credits that permit a company or a country to emit a certain amount of carbon dioxide or other green houses. The carbon trading is done with a goal of gradually reducing overall carbon emissions and mitigating their contribution to climate change. Carbon trade agreement allow for the sale of carbon credits in order to reduce the total emissions.
Among the many problems with carbon trading is that some of the most potent greenhouse gases are not carbon-based, e.g. SF_6, NO_x, and NF_3. Carbon trading cannot fully stop the human-caused climate change problem.
It is a global environmental business sector mainly concerned with global warming or global warming.
Carbon trading, also known as emissions trading or cap-and-trade, is a market-based approach to controlling and reducing greenhouse gas emissions. It is a system designed to incentivize organizations, industries, and countries to limit their carbon dioxide and other greenhouse gas emissions. The goal is to mitigate climate change and global warming by putting a price on carbon emissions.
Here's how carbon trading works:
The idea behind carbon trading is to create economic incentives for emission reductions. Companies that can reduce emissions at a lower cost can sell their allowances, while those facing higher costs can buy allowances to comply with regulations more economically.
Carbon trading is a tool aimed at achieving emissions reduction targets outlined in international agreements like the Kyoto Protocol and the Paris Agreement. It offers a market-based solution to address climate change while allowing flexibility for industries to transition to cleaner technologies and practices.