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Carbon trading
UK //ˈkɑːbən ˈtreɪdɪŋ//US //ˈkɑrbən ˈtreɪdɪŋ//
Definition
A market-based system to reduce greenhouse gas emissions by buying and selling carbon allowances.
In simple words: A system where companies buy and sell pollution rights.
Examples
- Many countries are implementing carbon trading to meet their climate goals.
- The effectiveness of carbon trading depends on strict regulations.
- Companies can profit from carbon trading by reducing their emissions.
- Critics argue that carbon trading may not significantly lower emissions.
- Carbon trading mechanisms can help finance renewable energy projects.
Usage notes
Used primarily in environmental and economic contexts. It's formal and might not be suitable for casual conversations.
Grammar pattern
standalone term
Memory hint
Think of trading carbon credits like trading baseball cards but for reducing pollution.
Collocations
- carbon credits market
- participate in carbon trading
- regulate carbon trading
- carbon trading scheme
Synonyms
- cap-and-trade
- carbon credits
- emission trading
- pollution trading
Common mistakes
- Confusing with 'carbon offsetting', which is a different concept.
- Assuming all countries have the same carbon trading regulations.
- Using in casual conversations where simpler terms are needed.