"Happy February with full of love and to celebrate Chinese New Year!! "

How the World Emission Market works

Carbon trading, sometimes called emissions trading, is a market-based tool to limit Carbon Emissions or Green House Gas Emissions (GHG).

The carbon market trades emissions (as we can see on the picture) from one polluter who did not fulfill its Emission limits with another polluter who exceeded its Emission limits. This is the most popular way to regulate carbon dioxide emissions. In this scheme governing body begins by setting a cap on allowable emissions then it distributes or auctions off emission allowances until the cap us reached. If one of the members does not have enough allowances it must reduce the production or buy somebody else´s emissions. Each year the cap decreases its emission quota thus reducing each year the amount of carbon dioxide released into the air. If the cap is set too high, it will have no effect on environment and it will cause losses to firms which reduced their emissions (banked the credits) on the other hand id the cap is too low allowances are rare and overpriced.

Great way (and the cheapest )to reduce the carbon footprint is to plant trees and to do that why not use PATT?

 

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