Emission Trading
/ɪˈmɪʃən ˈtreɪdɪŋ/
Definitions
- (n.) A market-based regulatory system allowing entities to buy or sell emission allowances to limit pollution.
The company participated in emission trading to comply with government carbon caps.
- (n.) The legal framework governing the allocation, transfer, and monitoring of emission permits.
Emission trading schemes require careful legal drafting to ensure enforceability and transparency.
Forms
- emission trading
Related terms
See also
Commentary
Often referred to as 'cap and trade,' emission trading is a key instrument in environmental law for reducing greenhouse gases cost-effectively.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.