Carbon trading is a market-based approach to controlling greenhouse gas (GHG) emissions, enabling companies to buy and sell carbon credits to meet regulatory or voluntary emission reduction goals. Each carbon credit represents one metric ton of CO₂ (or equivalent GHG) that can be emitted or offset. Organizations that reduce emissions beyond their targets can sell their excess credits to those struggling to meet their own goals, fostering a financial incentive for carbon reduction.
Carbon Trading Exchanges facilitate these transactions, providing a transparent platform where buyers and sellers can trade carbon credits with standardized pricing and regulatory oversight. These exchanges help set a market price for carbon, encourage investments in clean technology, and promote a global shift toward a low-carbon economy. By supporting accountability and transparency, carbon trading exchanges play a pivotal role in accelerating climate action on a large scale.
