Climate Change 101: Cap and Trade

Climate Change 101: Cap and Trade

There are a variety of policy tools to reduce the greenhouse gas emissions responsible for climate change.

This installment of the Climate Change 101 series explains how a cap-and-trade program sets a clear limit on greenhouse gas emissions and minimizes the costs of achieving this target. By creating a market, and a price, for emission reductions, cap and trade offers an environmentally effective and economically efficient response to climate change.