Carbon Market, definition of

Carbon Market

A Carbon Market is a market created from the trading of carbon emission allowances to encourage or help countries and companies to limit their carbon dioxide (CO2) emissions. This is also known as emissions or carbon trading. Carbon emissions trading is a way of offsetting greenhouse gases produced by polluters.


Under Carbon trading, a country having more emissions of carbon is able to purchase the right to emit more and the country having less emission trades the right to emit carbon to other countries. 

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