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Carbon Trade

   Also found in: Wikipedia 0.07 sec.
Carbon Trade
An idea presented in response to the Kyoto Protocol that involves the trading of greenhouse gas (GHG) emission rights between nations.

Notes:
For example, if Country A exceeds its capacity of GHG and Country B has a surplus of capacity, a monetary agreement could be made that would see Country A pay Country B for the right to use its surplus capacity.

The Kyoto Protocol presents nations with the challenge of reducing greenhouse gases and storing more carbon. A nation that finds it hard to meet its target of reducing GHG could pay another nation to reduce emissions by an appropriate quantity.

See also: Right, Trade

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Now, with the Kyoto guidelines for emission reductions coming on line next year, there is suddenly a new application for their technology, placing the company on the forefront of the emerging global carbon trade market.
These carbon trades, though engineered by reputable brokerages, are totally unregulated and there are no guarantees that any government will officially recognize the credits.
 
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