CARBON TRADING ?A FINANCIAL INCENTIVE TO POLLUTE LESS.

The carbon trade allows countries that have higher carbon emissions to purchase the right to release more carbon dioxide into the atmosphere from countries that have lower carbon emissions. Emissions trading or Cap and trade include the International emission trading (i.e.) between developed countries. ?An emission trading system is a powerful policy instrument for managing industrial greenhouse gas (GHG) emissions?. Trading in project-based credits can be termed as Flexible mechanisms such as CDM and JI. Clean Development Mechanism (CDM), based on article 12 of the Protocol, between developing and developed countries. The CDM allows emission reduction projects in developing countries to earn certified emission reductions (CERs), each equivalent to one tonne of CO2. Joint Implementation (JI) is based on article 6 of the Protocol. JI projects earn ERUs (Emission reduction units) each equivalent to one tonne of CO2. Carbon trading is one of the "fastest-growing specialties in financial services?. And companies are scrambling to get a slice of a market now worth well over 100 billion and that could grow to $1 trillion within a decade.