Here’s how a cap and trade system works: —A government entity sets a limit (cap) on the amount of a “pollutant,” such as carbon dioxide or another greenhouse gas. Entities that have an overall increase in sequestered carbon may be eligible to sell the extra as carbon credit (trade). Carbon sequestration commonly occurs in agriculture via an increase in vegetation (which uses carbon dioxide in photosynthesis) or an increase in dead plants (organic matter) in the soil. —Companies are issued permits from the government allowing them to emit a certain amount of greenhouse gas “pollutants.” This is called a carbon […]