| From Fool.co.uk: Under the Kyoto protocol most of the developed world, with the notable exception of the US and Australia, agreed to cap their emissions of greenhouse gasses, allocating caps to individual emitters such as power generators.
The protocol recognised carbon trading, so if an emitter undershot its cap it could sell its surplus to one which exceeded its cap. The EU Emissions Trading System is the largest mechanism for trading such carbon credits -- the right to emit one tonne of carbon dioxide or its equivalent..............................................Full Article: Source
|