Economics Carbon Trading Questions
The role of carbon markets in achieving climate goals is to provide a mechanism for reducing greenhouse gas emissions by creating a financial incentive for industries and countries to reduce their carbon footprint. Carbon markets allow for the buying and selling of carbon credits, which represent a certain amount of emissions. By setting a price on carbon, these markets encourage businesses to invest in cleaner technologies and practices, as well as incentivize the preservation and restoration of forests and other natural carbon sinks. This helps to reduce overall emissions and contribute to the achievement of climate goals, such as reducing global warming and mitigating the impacts of climate change.