ELI5: Explain Like I'm 5

Emissions Reduction Currency System

An emissions reduction currency system is a way of reducing our climate impact by trading something called emissions credits or allowances. These credits are a form of money that represent the amount of pollution that a person or company is allowed to put into the air. To reduce the overall amount of pollution in the atmosphere, companies and people can buy, sell, or trade these credits to stay within their pollution limits. By doing so, it helps reduce the overall amount of climate-changing emissions that are released into the atmosphere.