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Emission trading, otherwise known as carbon trading, has been around since the early 1990s. This topic is important on a worldwide scale because it revolves around the limiting of countries' carbon emissions to ensure a stable environment for humanity and to stop the quickening of global warming.
Emission trading was first implemented in the early 1990s due to the need for a decrease in acid rain and smog. Both of these problems were due to an overabundance of sulphur dioxide in the atmosphere. Since the inception of emission trading, acid rain reduction has been obvious and these reduction methods are now being implemented to deal with global warming.
Emission trading is mainly in place to restrict the emissions of carbon dioxide, which is better known as greenhouse gas. Carbon dioxide is needed to support life on this planet, but when its levels are too high, it causes global warming.
Emission trading fundamentals basically state that individual countries of the world will set-up a carbon market and companies within these countries will need to purchase carbon permits to legally emit carbon dioxide. Companies, usually industrial in nature, that are producing too much carbon dioxide will be forced to use cleaner technologies and practices to lower emissions.
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