Carbon Trading

Recently while strolling through the pages of Economic Times, popularly known as ET, I cam across an article, with heading "China still ahead of India in Carbon trading". Carbon Trading, the term seems to be obnoxious, but it really struck me and I googled the web to get the exact meaning of Carbon trading. In trading community Carbon Trading is also known as Emission trading. So according to CarbonTrading.com, Carbon Trading can be defined as "is a market based mechanism for helping mitigate the increase of CO₂ in the atmosphere. Carbon tradingmarkets are developing that bring buyers and sellers of carbon credits together with standardized rules of trade.". So a big power generator company can become a buyer of Carbon Credits, while an agricultural farm owner may become a seller of Carbon Credit. So if a power company has to increase its capacity beyond the defined band, then they have to buy the Carbon Credit from the less polluter or less Co2 emitter seller, thus forming a tradable environment. I hope this platform may provide both development with environment control at the same hand.

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Thanks&Regards,
Mohit Kumar