Carbon trading, also known as emissions trading or cap-and-trade, is a forward-looking strategy for reducing greenhouse gas emissions. This market-based approach allows companies and entities to buy and sell emission allowances, providing financial incentives to reduce emissions. Under a carbon trading system, a government sets a cap on total emissions and allocates or auctions emission permits to participating entities. Companies that successfully reduce emissions below their allocated permits can sell their surplus allowances to those struggling to meet their targets. This dynamic system fosters emission reduction, encourages cleaner technologies, and promotes environmental responsibility. Carbon trading is a critical component of global efforts to combat climate change, offering an economically efficient way to reduce emissions and foster innovation in clean energy solutions. It exemplifies our collective commitment to a sustainable and eco-conscious future.