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“It is a very major says Praveen Kumar, chair of the department of financw and executive director of the Globakl Energy Management Institute at the Universithof Houston. “You are commoditizinvg what is involved in the production of large sectors of mostmoderj economies.” Carbon trading is the exchange of either auctioned or distributed freely by a governiny body, that allow companies to emit a set quantity of carbonj — measured in tons — into the atmosphere. Commonlyy referred to as a cap-and-trades system, under this scheme, companies are given a maximun amount, or cap, of carbon they can emit througgh their allotmentof credits.
Those who exceed the cap are Companies can, however, purchased unused credits from othetr companies on an exchange if theyrequire more.
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