What are cap-and-trade emissions reductions?
Under a cap-and-trade system, a cap is placed on the total emissions from a region or an economic sector, and the cap is generally ratcheted downward over time in order to reduce overall emissions. Emissions trading allows individual polluters to buy and sell emissions permits that add up to the capped amount. Thus polluters who can reduce their emissions more cheaply can sell their emissions permits to others. The net result: less pollution at a lower overall cost. See the Globe and Mail article by Sustainable Prosperity’s Stewart Elgie and Dan Gagnier: Emissions Trading: Like foreign aid, but better.
