emissions trading and cap-and-trade systems

"Emissions trading and cap-and-trade systems are market-based approaches aimed at reducing pollution and greenhouse gas emissions. In these systems, an overall limit or cap is set on the total amount of emissions allowed. Industries or entities are then allocated permits corresponding to their allowable emissions. They can either reduce their own emissions or purchase additional permits from others who have surplus permits. This allows for flexibility, incentivizes emission reductions, and enables the trading of emissions permits among participants."

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