Carbon trading is the general name of greenhouse gas emission trading, that is, taking carbon dioxide emission rights as commodities, the buyer obtains a certain amount of carbon dioxide emission rights by paying a certain amount to the seller, thus forming carbon dioxide emission rights trading, referred to as carbon trading.

What does carbon trading mean?

In the carbon trading market, the trading subjects can generally be divided into government, performing enterprises, investment institutions, non-performing enterprises, social organizations and individuals, and different trading subjects will form a variety of trading modes.

There are currently seven carbon emission exchanges in China, namely Guangzhou Carbon Emission Exchange, Shenzhen Carbon Emission Exchange, Beijing Environmental Exchange, Shanghai Environmental Energy Exchange, Hubei Carbon Emission Exchange, Tianjin Carbon Emission Exchange and Chongqing Carbon Emission Exchange.

Carbon trading is a market mechanism to deal with climate change and thus reduce greenhouse gas emissions. Its core idea is to establish a trading market under the control of total carbon emissions, and let the market mechanism play a decisive role in the allocation of carbon emission rights.