Business Diplomacy
Cap-and-trade systems are market-based approaches used to control pollution by providing economic incentives for reducing emissions. These systems set a limit (cap) on the total amount of greenhouse gases that can be emitted by all participating entities, allowing companies with low emissions to sell their excess allowances to larger emitters. This creates a financial motivation for businesses to invest in cleaner technologies and adopt more sustainable practices, aligning with global environmental agreements.
congrats on reading the definition of cap-and-trade systems. now let's actually learn it.