Carbon trading is called "carbon emission trading", so it does not trade carbon or carbon dioxide, but carbon dioxide emission rights (emission credits). Carbon trading takes carbon dioxide emission right as a commodity, and the buyer obtains a certain amount of carbon dioxide emission right by paying a certain amount to the seller, thus forming the trading of carbon dioxide emission right. Carbon trading markets are artificially created by governments through emissions controls on energy-consuming enterprises. Usually, the government sets a carbon emission total and allocates quotas to companies according to certain rules.
If the enterprise's emissions exceed the quota in the future, it needs to buy the quota in the market. At the same time, if some enterprises end up emitting less carbon than they were entitled to by adopting energy-saving and emissions-reduction technologies, they can sell the surplus quota through the carbon trading market. The two sides typically trade through carbon exchanges. In the first case, if the cost of emission reduction is lower than the market price of carbon trading, the enterprise will choose emission reduction, and the share generated by emission reduction can be sold to gain profits. In the second case, when the emission reduction cost of an enterprise is higher than the carbon market price, it will choose to purchase from the government, enterprises or other market entities that have quotas in the carbon market to achieve the emission reduction target set by the government. Those who do not buy enough allowances to cover their actual emissions face hefty fines.
Through a set of design, carbon carbon trading mechanism will be internalized as part of the costs of the enterprise management, and deal cost of carbon price, guide enterprises to choose the optimal carbon reduction method, including the transformation, the energy saving and emission reduction of carbon quota to buy, or carbon capture, market-oriented approach made in industrial structure from energy to low energy transformation at the same time, the whole society cost optimization. During the process of carbon economy, heat exchanger equipment is essential in the detailed process.