Carbon emissions trading

Carbon emissions trading is a way for people and companies to buy and sell things called "emissions allowances." An emissions allowance is like a ticket that says someone can emit a certain amount of a gas called carbon dioxide into the air.

Carbon dioxide is a gas that is produced when we burn things like gasoline in cars or coal in power plants. Too much carbon dioxide in the air can cause problems like climate change, which can make the Earth's temperature hotter and make weather patterns more extreme.

So, if someone wants to emit carbon dioxide into the air, they might have to buy an emissions allowance first. Companies can buy these allowances from other companies that have extra ones to sell. The price of the allowances can go up or down depending on how many are available and how much people want them.

The idea behind carbon emissions trading is to make it more expensive for companies to pollute the environment. If they have to pay for emissions allowances, they might be more likely to find ways to reduce their carbon emissions, like using cleaner forms of energy.

Overall, the goal of carbon emissions trading is to reduce the amount of carbon dioxide and other greenhouse gases that are emitted into the air, to help protect our planet for future generations.