00:01
Cap and trade is a system that governments have put into place to try and limit the amount of pollution that an area is producing.
00:13
So the cap part of cap and trade means the limit that emissions, the limit of emissions that a polluter or a facility can emit.
00:25
And this is a numerical value that can be directly measured by that, building.
00:33
And then the trade portion comes in to play when a facility can sell an amount of emissions that they have or an amount of that allowance.
00:47
So if a company doesn't produce all the way to their allowance, they can sell to another company that needs some more room to emit.
00:59
And that company that bought that omission can now produce to that amount.
01:08
And there's both benefits and drawbacks to this.
01:11
So let's look at the benefits first.
01:13
So of course it prevents excess pollution or excess emissions.
01:20
And this is allowing us to directly control how much pollution we're releasing.
01:28
And it puts a cap and make sure that.
01:31
We're only omitting what's necessary...