The UNFCCC works on the "cap-and-trade" principle.

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The UNFCCC (United Nations Framework Convention on Climate Change) is a treaty that aims to reduce global greenhouse gas emissions and mitigate climate change. However, it does not work on the "cap-and-trade" principle. Cap-and-trade is a specific policy mechanism used to allocate emissions allowances and create a market for trading emissions permits, but it is not the only approach used by the UNFCCC. The UNFCCC employs a variety of mechanisms and strategies, including national emissions reduction pledges (known as Nationally Determined Contributions or NDCs), financial and technical assistance to vulnerable countries, and technology transfer to promote cleaner energy sources and more efficient industrial processes.

The UNFCCC Works on the "Cap-And-Trade" Principle