Carbon Trading

Cities are seeking implementation methods to reduce their carbon emissions. One of these is carbon trading. This process is by no means new, but it is a game-changer when used as a city-wide policy. New York City appears to be moving forward with implementing Local Law 97’s building emission cap, and carbon trading could be a very feasible solution to buildings that overproduce emissions. Below is an example of how carbon trading works:

Let’s say Building A has six carbon credits, where a carbon credit is a permit that allows the company that owns it to emit a certain amount of greenhouse gases. Building B also has six carbon credits but has produced emissions over its cap. If Building A reduces its emissions and only uses three carbon credits, they could sell the remaining three carbon credits to Building B, which means Building A realizes a revenue and Building B becomes compliant. In this system, both parties benefit.


  • Buildings covered by emission caps (typically, buildings with at least 25,000 square feet)
  • Buildings that quantifiably and repeatedly produce fewer greenhouse gases than their cap are eligible to earn carbon credits


  • Promote environmental justice by unlocking new funds for investment in buildings
  • Provide flexibility for building owners to find the lowest-cost path to compliance with Local Law 97
  • Incentivize earlier carbon savings from buildings by rewarding owners who act sooner to implement energy efficiency upgrades

If this is an opportunity that you are interest in, please stay tuned as STRATCO Property Solutions prepares to help clients with this carbon trading, and for any questions, you may contact us at the below.

Thank you,

Robert Sedaghatpour