Carbon asset trading (demonstration project)

Carbon emissions trading is a market mechanism designed to reduce the impact of climate change by limiting greenhouse gas emissions. In this type of trading, a government or international organization sets a cap on carbon emissions and then allocates that cap to businesses or countries. If a business or country emits less than its allocated cap, it can sell its unused emission allowances to other businesses or countries for a profit. Conversely, if a firm or country's emissions exceed its allocated cap, it must purchase unused emission allowances from other firms or countries to avoid fines or other penalties. This trading mechanism can encourage enterprises and countries to take measures to reduce greenhouse gas emissions, thereby promoting sustainable development.