Carbon Trading
Auctioning emission credits could generate $78.7 billion yearly
Trading carbon leads to cleaner air
Carbon trading lowers greenhouse gases by using an emissions reduction target. A segment of the traded credits are retired, reducing emissions each time a trade occurs. Organizations that do not pollute may also purchase and retire credits, increasing the cost of remaining credits based on demand. Corporations can receive tax deductions by donating their allowances to nonprofits.
The cap on emissions is usually set by a political process, but companies choose how or if they will reduce them. Critics see carbon trading as a proliferation of the free market into public spaces and environmental policy-making. However, the global market for carbon trading grew 36% in 2008 and is expected to surpass $100 billion by the end of the year.
