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Any trading system designed to offset carbon emissions from one activity (such as burning fossil fuels in manufacturing, driving, or flying) with another (such as installing more efficient technologies, planting carbon-reducing plants, or establishing contracts with others not to partake in carbon-releasing activities). The Chicago Climate Exchange (CCX) is the first and biggest carbon trading market in existence and is modeled on a stock market. Other programs, such as driveneutral.org also allow carbon trading for individuals without interfacing directly with the CCX or other trading systems.


When activities that reduce or capture carbon are paired successfully with those that produce it, these are said to be carbon neutral or climate neutral.

The Dictionary of Sustainable Management [online] Available from: http://www.sustainabilitydictionary.com/ (accessed 8-26-16)

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