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“It is a very major deal,” says Praveen chair of the department of finance and executive directorf of the Global Energy Management Institute at the Universityof “You are commoditizing what is involved in the productiobn of large sectors of most moderh economies.” Carbon trading is the exchange of either auctioned or distributed freely by a governintg body, that allow companies to emit a set quantitty of carbon — measured in tons — into the Commonly referred to as a cap-and-trader system, under this scheme, companiesw are given a maximum amount, or cap, of carbomn they can emit through theier allotment of credits. Those who exceed the cap are fined.
Companies can, however, purchase unused credits from otheer companies on an exchangr if theyrequire more.
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