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Carbon Trading

Any trading system designed to offset carbon emissions from one activity (such as burning fossil fuels in manufacturing, driving, or flying) with another (such as installing more efficient technologies, planting carbon-reducing plants, or establishing contracts with others not to partake in carbon-releasing activities). 

When activities that reduce or capture carbon are paired successfully with those that produce it, these are said to be carbon neutral or climate neutral.

Explore Other SDG Vocabulary

Carbon Cycle

Carbon Cycle

Carbon cycle is the natural process through which carbon is exchanged between the atmosphere, oceans, soil, rocks, and living organisms on Earth. This cycle, when in rhythm, helps...

Carbon Footprint

Carbon Footprint

Carbon footprint is the amount of greenhouse gases (GHGs) such as carbon dioxide, methane, and nitrous oxide that we emit through our daily activities and lifestyle choices such as...

Carbon Tax

Carbon Tax

A tax on fossil fuels, especially those used by motor vehicles, intended to reduce the emission of carbon dioxide. Under a carbon tax, the government sets a price that emitters mus...