Carbon Trading In Europe: Companies can buy or sell a ton of CO2 for about $20

[Jhon Mathew]

In the effort to reduce harmful emissions without subverting industry, one model has come to the fore: carbon trading. Under this system, a ceiling, or “cap,” is set on the amount of emissions allowed into the air, under which manufacturers and other emitters can buy and sell pollution permits. The cost of those permits, in turn, makes it economical for companies to cut pollution voluntarily.
The system is gaining popularity. In the European Union, emissions fell about 5% under a carbon trading system this year, and Beijing is poised to become a carbon trading hub. Not to be outdone, the U.S. has two cap and trade bills in front of Congress with goals to cut emissions 17-20 percent by 2020, and 83 percent by 2050.

Source: TakePart