What does carbon trade mean?

carbon trade meaning in Law Dictionary

trading system for nations, businesses and individuals designed to offset carbon emissions from a single activity with another, wherein those that cannot meet their emissions goals may buy credits from those that exceed their particular targets.

carbon trade meaning in Business Dictionary

Trading the liberties of greenhouse gas emissions. The theory is a response toward Kyoto Protocol. Both countries and organizations decrease their emissions below designated levels and offer this amount to a company or nation with greenhouse gas emissions which can be excessive.