How Cap and Trade Works

From www.congress.org:

As world leaders meet in Copenhagen to discuss global warming, the U.S. Senate is considering a bill to create a cap and trade system.

The measure under debate would put a cap -- or limit -- on the amount of greenhouse gas emissions in the United States in a given year.

It would also allow polluters to trade their permits for emissions.

But how would it work exactly?

Watch a brief video explaining cap and trade on Congress.org.