Cap-and-trade: What you need to know about emissions jargon
Quebec and Ontario are set to sign a cap-and-trade deal in an effort to reduce greenhouse gas emissions. Here is what you need to know about some key phrases:
What are greenhouse gas emissions?
Greenhouse gases are those that trap heat in the atmosphere. The main greenhouse gases include carbon dioxide, methane, and nitrous oxide. Carbon dioxide emissions from burning fossil fuels are the biggest contributor to climate change, according to the David Suzuki Foundation.
What is a cap-and-trade system?
Cap-and-trade is a market-based approach to reducing pollution. It allows governments to set an overall cap on greenhouse gas emissions from industries and businesses covered by the system. In order to comply with the program, companies that exceed the limit can purchase carbon credits, or allowances, from firms that remain below the cap.