| Carbon markets could play a crucial role in delivering promises made at the Paris climate conference. The idea behind carbon markets is simple. A government issues a limited number of permits, which companies can then trade in return for the right to emit a certain amount of the pollutant.
As companies scramble to obtain these permits in the carbon market, the price adjusts. High demand for permits will drive up price, and vice versa. Carbon is measured by the tonne emitted and, crucially, all companies within a particular country face the same price...............................................Full Article: Source
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