How do carbon markets work? | The Economist

In theory putting a price on carbon emissions should incentivise businesses to stop polluting. So why have carbon markets failed to achieve their goal of reducing global emissions? Read more here: 00:00 - Has putting a price on emissions worked? 00:27 - Where do carbon markets come from? 01:42 - How does ‘cap and trade’ work? 03:22 - Why aren’t carbon markets reducing emissions? 04:15 - What are the loopholes? 05:24 - What are the solutions? Find The Economist’s most recent coverage on climate change: Sign up to The Economist’s daily newsletter to keep up to date with our latest stories: What’s the cheapest way to decarbonise?: Listen to our new podcast on tackling climate change: Read more about how carbon prices can be used: Listen to our money talks podcast episode on pricing pollution: https://econ