Alternative energy, definition of

The sale and purchase of carbon credits or pollution permits through carbon markets.

The practice is designed to help control carbon dioxide emissions by placing a price on a ton of emitted CO2 and providing members of trading schemes with economic incentives to reduce the amount of pollution they produce.

The market is dominated by cap-and-trade schemes, such as the EU's emissions trading scheme, but carbon trading can also refer to the sale of carbon offsets from emission reduction projects.

In theory, carbon trading mechanisms mean that emission reductions are achieved at the lowest possible cost, as businesses will only purchase carbon credits - effectively paying someone else to cut emissions for them - if they can not deliver emission reductions at a lower cost themselves.

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A turbine having a large vaned wheel rotated by the wind to generate electricity. Often collected together to form 'farms'.

• 10:10 - 10 reasons carbon emissions trading does not work
  Carbon emissions trading does not work, we give you 10 solid reasons why it won't.
• resignation from American Physical Society over global warming scam
  Prof Hal Lewis has just resigned from the American Physical Society after 67 years membership in disgust at the corruption around the 'global warming scam'

• Australia's biggest electric truck depot planned for busy freight route
  Australia's road freight is set to become the nation's largest source of emissions by 2030, but a NSW trial aims to show electric heavy trucks can cut carbon.
• Once the butt of jokes, now a great hope: The race for fusion energy
  The two great technology revolutions of the modern era — artificial intelligence and renewable energy — are colliding.
• A meeting in China this week may hold the key to our energy future
  The two great technology revolutions of the modern era — artificial intelligence and renewable energy — are colliding.
• 'Extension cord to nowhere' looms large as Australia’s energy transition evolves
  Touted as a model for the energy transition, a "quick and easy" high-voltage powerline project linking South Australia directly to New South Wales is running dramatically over time and over budget.
• Energy transition in flux amid struggle to build major power arteries
  Touted as a model for the energy transition, a "quick and easy" high-voltage powerline project linking South Australia directly to New South Wales is running dramatically over time and over budget.
• Revised transmission line corridor shocks regional community
  Property owners in the path of a proposed new route for the New England renewable energy zone corridor fear their land values will plummet.
• China is supercharging its renewables industry – 14 July 2025
  As the US slashes incentives for solar, wind and electric vehicles, China is accelerating its energy transition. Alan Kohler explains.
• VicGrid releases guidelines for renewables developers after community angst
  VicGrid is cracking down on cowboys in the renewable energy sector, demanding that developers behave better or be refused access to the network.
• Just 13pc of rooftop solar capacity realised, advocates say
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• Push to unlock rooftop solar potential as race to net zero continues
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Related Tags: renewable energy