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English definition of “carbon trading”

carbon trading

noun [U]
 
 
(also carbon emissions trading)
ENVIRONMENT a system for buying and selling the right to release carbon dioxide into the environment. Companies or countries agree a limit on the amount of carbon dioxide that can be produced, then can buy the right to produce more than this from companies or countries that produce less: If we can come up with some good market mechanisms, carbon trading has a lot of promise. a carbon trading system/market/mechanism
(Definition of carbon trading from the Cambridge Business English Dictionary © Cambridge University Press)
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