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carbon tradingnoun [U]

uk   us   (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 ​marketmechanisms, ​carbontrading has a lot of promise. acarbontradingsystem/​market/​mechanism
(Definition of carbon trading from the Cambridge Business English Dictionary © Cambridge University Press)
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