Catching up with the new carbon cycle.

The article reports on the initiatives of the European Union (EU) and the U.S. to adopt carbon emissions trading to address concerns related to pollution. The US$24.3 billion EU Emissions Trading Scheme (EU-ETS) is based on a common trading currency of emission allowances, wherein one carbon credit represents the right to emit one ton of carbon dioxide. Proponents of the capitalization and trade model contend that the flexibility in this scheme ensures that emissions can be reduced in a most cost-effective way. INSETS: Carbon trading in action;A global 'stock exchange'.