What is ‘Emission Trading’? Explain the use of Futures on Carbon Credits for mitigating risk of increasing costs in pollution control. Also discuss the present status of ‘Emission Trading’ in India.  

Emission trading is a market-based mechanism designed to reduce greenhouse gas emissions. Under an emissions trading system (ETS), governments set a limit or cap on the total amount of emissions allowed within a certain period of time. They then issue permits or credits that entitle companies to emit a certain amount of greenhouse gases. Companies can trade these permits or credits with one another, allowing those that can reduce emissions more cheaply to sell their excess permits to those that find it more expensive to do _____ ________ _____ ____ _______ ___ _____ ____ _________ ________ ______.
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