Carbon Market
A carbon market is a system that allows companies to buy and sell permits for greenhouse gas emissions. Each permit allows a company to emit a specific amount of carbon dioxide. If a company reduces its emissions below its allowance, it can sell its extra permits to others that need more. This creates a financial incentive for companies to lower their emissions, helping to combat climate change. The ultimate goal is to reduce overall carbon emissions in a cost-effective way by allowing the market to determine the price of carbon.
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A carbon market is a system where companies can buy and sell carbon allowances to limit greenhouse gas emissions. Each allowance permits a company to emit a certain amount of carbon dioxide. If a company reduces its emissions and has extra allowances, it can sell them to another company that exceeds its limit. This trading encourages businesses to innovate and reduce their carbon footprint, aiming to fight climate change. Overall, carbon markets aim to provide economic incentives for reducing pollution and support global efforts to limit climate change impacts.