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You're describing one form of carbon offsets. A cap & trade system is pretty much what you're suggesting, depending on the specific implementation of a cap&trade system.

https://en.wikipedia.org/wiki/Carbon_offset#Land_use.2C_land...

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I did not realize cap and trade systems were backed by actual carbon storage. That makes more sense then. Thanks for the link.

they don't have to be.. but most cap and trade proposals include carbon offsets... so a polluter can complete an offset project OR purchase credits to pollute more.

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