Cap and Trade Carbon
February 13th, 2009 • Related • Filed Under
Cap and Trade is when Government sets a long term target or a cap for emissions. Underneath that there will be an emission trading scheme applied across different sectors for lets say top 1000 emitters and each of them will have their own target or cap. All of those individual caps will add up to the national cap. These companies will trade in the excess units they have or more they need between eachother. In trading those units they will allow capital to flaw where the emissions will be reduced most cost effectively.