carbon trading

noun [U] (also carbon emissions trading)

Definition

› 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 noun from the Cambridge Business English Dictionary © Cambridge University Press)