The trading of carbon dioxide (CO2) emission allowances through a scheme, such as the European Emissions Trading Scheme. Exchange Handbook Glossary
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carbon trading UK US 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
Financial and business terms. 2012.