Environmental Monitoring and Control
Cap-and-trade is an environmental policy tool designed to reduce greenhouse gas emissions by setting a limit, or cap, on the total amount of emissions that can be produced. Companies are issued emission permits, and if they reduce their emissions below the cap, they can sell their excess permits to other companies that are struggling to meet their limits. This creates a financial incentive for companies to invest in cleaner technologies and ultimately aims to lower overall air pollution levels.
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