| The Reality of International Emissions Trading |
| Written by Daniel Stouffer | |
| Friday, 19 June 2009 | |
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As governments look for means to control costs and reduce greenhouse gas emissions, the concept of international emissions trading comes into focus. Just as commodities are traded on the global market, the intention is to allow companies to trade off any unused emissions between themselves.
As governments look for means to control costs and reduce greenhouse gas emissions, the concept of international emissions trading comes into focus. Just as commodities are traded on the global market, the intention is to allow companies to trade off any unused emissions between themselves. International emissions trading aims to take advantage of economic incentives, which are being put in place with the aim of reducing greenhouse gas emissions. In this way, it is hoped that air pollution will be reduced prior to the advancement of regulations. 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. International emissions trading is an example of free market environmentalism. Once the governing agency sets the allowable emissions limits, the decision is left up to companies whether or not to implement emission reduction methods that will significantly save them money over the long term. The Article Author: Daniel Stouffer has a lot of information on international emissions tradingand how refrigerant-tracker will aid you. |
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