What is Carbon Trading: Part One – Emission Reduction Trading

The United Nations Framework Convention on Climate Change establishes legal provisions for market mechanisms known as greenhouse gas emission rights trading (also called emission reduction trading). Six greenhouse gases must be reduced: including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).