How do carbon markets work?

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: https://econ.st/3mi51Eo

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: https://econ.st/3zCt2uW

Sign up to The Economist’s daily newsletter to keep up to date with our latest stories: https://econ.st/3gJBH8D

What’s the cheapest way to decarbonise?: https://econ.st/3iSDtVm

Listen to our new podcast on tackling climate change: https://econ.st/3Fcx2pA

Read more about how carbon prices can be used: https://econ.st/3AXBjdS

Listen to our money talks podcast episode on pricing pollution: https://econ.st/3kOIEXB

What is the role of green investment?https://econ.st/3zLVz0I