Covering carbon pricing in China and around the world, MIT Technology Review referenced Near Zero’s report, California’s climate emissions are falling, but cap-and-trade is not the cause:

Many economists tout cap-and-trade programs as the most efficient way for nations to cut emissions.

Under such a program, a government agency gives away or sells a limited number of allowances for emitting greenhouse gases (this is the cap). Companies that produce less than allowed under their permits can sell excess allowances while those that want to exceed their limit must buy more from another party (that’s the trade).

The scheme essentially puts a price on carbon emissions, creating financial incentives for companies to cut pollution. While the theory sounds good, only a handful of such programs have been put in place, including in California and Europe, with mostly modest results to date.

Read the full article, “China is creating a huge carbon market—but not a particularly aggressive one,” by James Temple on The MIT Technology Review website.