Carbon emission trading (also called carbon market, emission trading scheme (ETS) or cap and trade) is a type of emission trading scheme designed for carbon dioxide (CO2) and other greenhouse gases (GHG). It is a form of carbon pricing. Its purpose is to limit climate change by creating a market with limited allowances for emissions. This can reduce the competitiveness of fossil fuels, and instead accelerate investments into renewable energy, such as wind power and solar power. Fossil fuels are the main driver for climate change. They account for 89% of all CO2 emissions and 68% of all GHG emissions.
Chicago Climate Justice activists protesting cap and trade legislation in front of Chicago Climate Exchange building in Chicago Loop
Price of CO2 in the EU Emissions Trading System
Climate change mitigation
Climate change mitigation (or decarbonisation) is action to limit the greenhouse gases in the atmosphere that cause climate change. Greenhouse gas emissions are primarily caused by people burning fossil fuels such as coal, oil, and natural gas. Phasing out fossil fuel use can happen by conserving energy and replacing fossil fuels with clean energy sources such as wind, hydro, solar, and nuclear power. Secondary mitigation strategies include changes to land use and removing carbon dioxide (CO2) from the atmosphere. Governments have pledged to reduce greenhouse gas emissions, but actions to date are insufficient to avoid dangerous levels of climate change.
The 150 MW Andasol solar power station is a commercial parabolic trough solar thermal power plant, located in Spain. The Andasol plant uses tanks of molten salt to store solar energy so that it can continue generating electricity for 7.5 hours after the sun has stopped shining.
The Shepherds Flat Wind Farm is an 845 megawatt (MW) nameplate capacity, wind farm in the US state of Oregon. Each turbine is a nameplate 2 or 2.5 MW electricity generator.
The 22,500 MW nameplate capacity Three Gorges Dam in the People's Republic of China, the largest hydroelectric power station in the world
Battery storage facility