Cap and Trade

Cap and Trade is a market based policy tool, which sets a cap on the amount of emissions from a group of sources with the end goal of reducing the overall pollution in a nation, region, or industry. The intention is to incentivize a reduction in emissions and penalize those who don’t comply. Participants in Cap and Trade receive allowances and can design their own compliance strategy giving them flexibility to sell and purchase emissions,... Read More

Pollution Offset

The attempt to offset the results of pollution from some activity of process by improving the environment in an equal benefit. Carbon trading, for example, allows carbon polluters to offset the effect of excess carbon in the environment by trading credits with those whose activities reduce an equal amount of carbon. Pollution offsets can exist for any kind of polluting materials as long as an equal and direct benefit can be established.  Read More

Emissions Trading

An approach used by governmental regulatory agencies, private trading systems (such as the CCX), and private companies to reduce air pollution by providing economic incentives to reduce net emissions. Limits or “caps” are set and groups that foresee exceeding these caps may purchase credits from groups that have not the exceeded their emissions levels.  Read More

Climate Neutral

The process of offsetting carbon-producing activities with those that either reduce or capture carbon, thus credibly neutralizing the net amount of carbon released in the atmosphere from a particular activity.  Read More