What is 'Emissions Trading '? Discuss the use of Futures on Carbon Credits for mitigating risk of increasing costs in control of pollution.

Emissions trading, also known as cap and trade, is a market-based approach to controlling pollution by providing economic incentives for reducing emissions of pollutants. It works by setting a cap on the total amount of a specific pollutant that can be emitted by regulated entities, such as industrial facilities or power plants. These entities are issued a certain number of emissions allowances, each representing the right to emit a _____ _______ __________ _______ ____ _______ ___ _____ ________ _______.
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