Carbon regulation refers to the policies and laws designed to control the amount of carbon dioxide (CO2) emissions released into the atmosphere. These regulations aim to mitigate climate change by limiting greenhouse gas emissions from various sources, such as vehicles, factories, and power plants. Governments and organizations implement these rules to promote cleaner energy sources and encourage sustainable practices. One common method of carbon regulation is the establishment of carbon pricing, which includes mechanisms like carbon taxes or cap-and-trade systems. Carbon taxes impose a fee on the carbon content of fuels, while cap-and-trade allows companies to buy and sell emission allowances, creating a financial incentive to reduce emissions.