Emissions trading

Emissions trading,

Definition of Emissions trading:

  1. Tradable-permit system in which a greenhouse gases emitter (firm or country under obligation to limit its total air pollution emissions to a specified level) can buy/sell permission to emit a certain amount of emissions from/to other emitters (who are below/above their limit). The market price of these permits (called pollution credits) reflects the marginal cost of emission reduction and gives an emitter the incentive to install and manage a cost effective pollution control system as an income producing asset. Accumulating emissions reductions for trading is called banking. See also bubble concept.

  2. A system by which countries and organizations receive permits to produce a specified amount of carbon dioxide and other greenhouse gases, which they may trade with others.

How to use Emissions trading in a sentence?

  1. Finally, there is the issue of emissions trading.

Meaning of Emissions trading & Emissions trading Definition