The Concept Of International Emissions Trading In Action
View PDF | Print View
by: DanielStouffer | Total views: 57 | Word Count: 438
It is commonplace in the global market to witness companies trading commodities. In an attempt to tackle the cost of reducing greenhouse gas emissions as part of a wider goal of addressing adverse climate change, governments are soon to implement international emissions trading, which will operate in a similar way.
By offering economic incentives, which aim to reduce gas emissions, it is hoped that air pollution will be in part controlled. There are a number of international emissions trading markets in place around the world, which have been implemented prior to the advancement of regulation.
In an international emissions trading scenario, governments will set a cap on the amount of pollution that is permissible. Companies will be issued credits allowing them to emit a certain amount of environmentally damaging gas. If such a company does not use all its credits, the unused allocation can be traded to another company, should that company need to increase its own emission. This is known as cap and trade.
A cap and trade system is not a new concept. It was used for the first time in the U.S. as part of its Acid Rain program. The European Union currently uses the system to reduce carbon emissions. As part of the global treaties to control greenhouse gases, a cap and trade system is expected to lower carbon emissions.
Tracking software is available to help a company in the complex task of tracking their cabin footprint in real-time. The software takes inventory of indirect and direct greenhouse gas, showing a company's impact on the surrounding environment and allowing them to identify areas of reduction amid overall management.
Under international emissions trading, companies that pollute less are rewarded for their efforts, while those that are major contributors to pollution pay more for their emissions. The concept encourages enterprises to lower their emissions in an effort to reduce global warming.
Countries are implementing a number of initiatives to control global warming. In the U.S. and several foreign countries, laws and treaties have been established to reduce air pollution. The main focus is to reduce the use of chemicals that lead to global warming. These greenhouse gases include carbon dioxide, hydrochlorofluorocarbons (HCFCs), chlorofluorocarbons (CFCs) and perfluorocarbons (PFCs). Part of the regulation is eliminating products that contain these gases, such as the ongoing phase out of refrigerant gas used in commercial refrigeration and air conditioning (RAC) systems and heating, ventilation and air conditioning (HVAC) systems.
Free market environmentalism is seeing as the great incentive behind the success of international emissions trading. Governments simply set limits and companies can trade within those limits, with the powerful incentive of cost savings driving their voluntary emission reductions.
About the Author
Daniel Stouffer has much more information on international emissions tradingand how refrigerant-tracker will aid you.
Rating: Not yet rated
Login to vote
