Emissions trading market in pollution-licenses is more widely applicable than the market in emission-licenses. The international community began the long process towards building effective international and domestic measures to tackle GHG emissions (carbon dioxide, methane, nitrous oxide, hydroflurocarbons, perfluorocarbons, sulphur hexafluoride) in response to the increasing assertions that global warming is happening due to man-made emissions and the uncertainty over its likely consequences. That process began in Rio in 1992, when 160 countries agreed the UN Framework Convention on Climate Change (UNFCCC). The UNFCCC is, as its title suggests, simply a framework; the necessary detail was left to be settled by the
Carbon dioxide combustion of all carbon-based fuels, such as methane (natural gas), petroleum distillates (gasoline, diesel, kerosene, propane), coal, wood and generic organic matter produces carbon dioxide and, except in the case of pure carbon, water. As an example, the chemical reaction between methane and oxygen: It is produced by thermal decomposition of limestone, by heating (calcining) at about , in the manufacture of quicklime (calcium oxide, ), a compound that has many industrial uses: Iron is reduced from its oxides with coke in a blast furnace, producing pig iron and carbon dioxide: Carbon dioxide is a byproduct of the industrial production