What is carbon trading? | CNBC International?

Carbon trading is like a game where companies try to keep the planet from getting too hot by sharing points that show how much pollution they make.

Imagine you and your friends are playing a game in the park, and every time you throw a ball too hard, it makes a loud noise, like pollution. The more noise you make, the louder the park gets. If it’s too loud, the park might not be fun anymore.

Now, imagine each of you has a certain number of "quiet points" that let you play without making too much noise. If you use up all your quiet points and make too much noise, you have to buy more from someone who didn’t use theirs, like trading carbon credits.

Some companies are really good at being quiet (they pollute less), so they can sell their extra quiet points to others who need them. It’s a way for everyone to keep the park (or the planet) from getting too loud, or too hot, without having to stop playing altogether.