Greenhouse Gas Emissions Trading Scheme

A Greenhouse Gas Emissions Trading Scheme is a system designed to reduce pollution by allowing companies to buy and sell permits for emitting greenhouse gases, like carbon dioxide. Each company is given a limit on emissions, and if they pollute less than their allowance, they can sell the extra permits. If they exceed their limit, they must buy more permits from others. This market-based approach incentivizes businesses to lower emissions, as they can profit from decreasing their environmental impact, ultimately contributing to efforts against climate change.