“The Story of Cap & Trade”

“The Story of Cap & Trade” explains a system designed to reduce pollution, especially greenhouse gases. The government sets a limit (cap) on total emissions and distributes or sells allowances to companies. Companies can trade these allowances, buying more if they need to pollute more or selling extra if they reduce their emissions. This creates a financial incentive to cut pollution efficiently. Over time, the cap lowers, encouraging overall emission reductions. This market-based approach aims to balance environmental goals with economic activity, encouraging innovation and cost-effective pollution control.