Greenhouse Gas Emissions Trading
Greenhouse gas emissions trading refers to a market-based approach designed to reduce emissions of greenhouse gases. It allows companies or countries to buy and sell emission credits, with the goal of incentivizing emission reductions in a cost-effective manner. This system is based on the principle that those who can reduce emissions more cheaply will do so, while those for whom it is more expensive to cut emissions will purchase credits instead. By creating a financial incentive for reducing emissions, emissions trading aims to help combat climate change by encouraging the transition to a low-carbon economy.