Carbon trading

Environmental policy.

Carbon trading is an application of an emissions trading approach.

Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources.

This approach is designed to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive solutions.

See also

• Cap and trade
• Carbon credits
• Emission trading scheme
• Peak oil
• Streamlined Energy and Carbon Reporting