| The Concept Of International Emissions Trading In Action |
| Written by Daniel Stouffer | |
| Thursday, 25 June 2009 | |
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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.
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. With international emissions trading, a governing body sets a cap on pollution emissions and provides companies with credits that allow them to emit a specific amount of environmentally harmful gases. An enterprise that does not use their allocation can sell the unneeded credits to another company that needs to increase its emissions output. The process is commonly 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. There is automated carbon emissions tracking software that enables a company to track their carbon footprint in real time and take inventory of direct and indirect greenhouse gas emissions. This data shows a companys impact on the environment, identifies areas of reduction, and manages emission allocation opportunities. International emissions trading is good for the overall environment. It encourages companies to pollute less, as they are rewarded for their efforts, whilst those companies that see increased emissions, pay appropriately. The overall concept encourages the lowering of emissions due to financial penalties and should aid in the effort to reduce global warming. The United States and other governments are active in the introduction of laws and treaties to help reduce global warming. There are a number of chemicals known to be particularly impactful. Chlorofluorocarbons, perfluorocarbons, hydrochlorofluorocarbons, and carbon dioxide, for example. Regulations call for the elimination of products that contain these gases, and as such, refrigerant gas used in heating, ventilation and air-conditioning systems or commercial refrigeration and air-conditioning systems is being phased out. The concept of international emissions trading is seen as being a great example of free-market environmentalism. As companies are very often driven by cost savings, it is anticipated that they will voluntarily implement emission reduction methods, within the limits set by the governing agency. The Article Author: Daniel Stouffer has much more data on international emissions tradingand how refrigerant-tracker can aid you. |
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