Answer:
The system described is an example of an emissions trading scheme (ETS). In an ETS, a cap is set on the total amount of greenhouse gas emissions allowed, and then permits or credits representing the right to emit a certain amount of greenhouse gases are created and distributed among businesses. Businesses that emit less than their allotted amount can sell their unused permits to other businesses that need more permits to cover their emissions. This creates a market for emissions permits and provides an economic incentive for businesses to reduce their greenhouse gas emissions.