How do we get the money that is given out for cap and trade?



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    Cap and trade doesn’t imply that any money will be given out. It is a system of emissions trading. This means that the government will set a cap as to how much carbon pollution is allowed each year. Companies will be given pollution credits. It is in a way the right to pollute. Those credits can then be traded around to other companies. For instance, if Company A has better green technology and doesn’t need to pollute as much as Company B, then Company A can sell Company B its credits. It creates company incentives to upgrade to cleaner technology.  It is a system in which has already proved itself in some fisheries, like the Alaskan halibut fishery.

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