emissions trading, definition of

This is an economic incentive-based alternative to command-and-control regulation. In an emissions trading program, sources of a particular pollutant (most often an air pollutant) are given permits to release a specified number of tons of the pollutant. The government issues only a limited number of permits consistent with the desired level of emissions. The owners of the permits may keep them and release the pollutants, or reduce their emissions and sell the permits. The fact that the permits have value as an item to be sold or traded gives the owner an incentive to reduce their emissions.

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Related Tags: emissions trading

Emissions trading or cap and trade is usually a government-mandated, market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

• 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.

• Keir Starmer to unveil ambitious new UK climate goal at Cop29
  Exclusive: Target is 81% emissions cut compared with 1990, but activists say it must be backed by plan of action
• Data center emissions likely 662% higher than big tech claims. Can it keep up the ruse?
  Emissions from in-house data centers of Google, Microsoft, Meta and Apple may be 7.62 times higher than official tally
• Are electric cars really greener than petrol cars? We've lined up two SUVs and put them to the test
  Whether you drive an electric car or are considering making the switch, you've probably been drawn into a discussion about whether they are really better for the climate. To save you from your next barbecue encounter, we have put two cars to the test.
• Multi-billion-dollar bid to turn Pilbara's red dirt to green steel
  Australia's iron ore industry goes hand-in-hand with China. But it is a South Korean company looking to stump up billions of dollars for this green iron facility. 
• What impact does the Guardian have on the natural world?
  We have been measuring our organisation’s biodiversity footprint – here’s how we did it
• Energy transition titan Hugh Saddler’s quest to cut emissions leaves lasting legacy
  Hugh Saddler influenced a generation of researchers and policy-makers, not least through his involvement in the ACT’s 100% renewable energy transition
• More Carbon Credit Fraud Uncovered: CEO of Verra Resigns
  CEO of biggest carbon credit certifier to resign after claims offsets worthless
• Confusion surrounds China’s energy policies as GDP and climate goals clash
  Wave of permits for coal-fired power plants sparks concern as ambitions for GDP growth and lowering emissions come into conflict
• Greta Thunberg on the climate delusion: ‘We’ve been greenwashed out of our senses. It’s time to stand our ground’
  Governments may say they’re doing all they can to halt the climate crisis. Don’t fall for it – then we might still have time to turn things around

Related Tags: carbon trading