emissions trading, definition of

Emissions Trading

Energy obtained from sources that are essentially inexhaustible, unlike, for example, the fossil fuels, of which there is a finite supply. Renewable sources of energy include wood, waste, geothermal, wind, photovoltaic, and solar thermal energy.

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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.


This is often associated with carbon trading to allow polluters to 'offset' their pollution by buying equivalent carbon credits.

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emissions trading definition.
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