international emissions trading

International emissions trading is a system that allows countries to buy and sell carbon dioxide emission allowances. Each country is given a limit on how much they can pollute, and if they produce less, they can sell their unused allowances to countries that exceed their limits. This creates a financial incentive for countries to reduce their emissions and invest in cleaner technologies. The goal is to lower global greenhouse gas emissions cost-effectively, helping to combat climate change while allowing flexibility in how different countries meet their environmental goals.