Carbon Trading is a market-based system for buying and selling permits and credits to produce carbon emissions. The Carbon Trading aims the reducing of greenhouse gases, specifically targets carbon dioxide (calculated in tonnes of carbon dioxide equivalent or tCO2e) that contribute to global warming, particularly carbon dioxide emitted by burning fossil fuels. (Refer to the EU ETS (EU Emissions Trading System))
Related Definitions in the Project: The Commercial Definitions; HSE Management
Example Article of the Carbon Trading:
How Emerging Markets Will Benefit From New Carbon Trading Rules (Source: Oil Price on 25 November 2021): By Oxford Business Group - Amid pledges to phase out the use of coal and reduce methane emissions, world leaders at the recent UN Climate Change Conference (COP26) in Glasgow also agreed to reform global carbon markets and improve rules about carbon trading, seen as key tools in the transition towards decarbonisation. Carbon trading is a system whereby a government sets a limit on the amount of carbon that can be emitted, and then divides this amount into units. These units are allocated to different groups, industries and businesses, and can then be traded like any commodity. Proponents say that carbon trading will ultimately increase investment in environmentally friendly solutions, as the price placed on carbon makes fossil-fuel projects less competitive, while at the same time incentivising low-carbon energy sources such as wind and solar. ...
