There is an emissions trading scheme in operation internationally but
many people aren't aware that this is perceived to be the cornerstone
of the climate change policy in the EU and USA.br>
Firms are set quotas on how much carbon dioxide they can produce per year,
if they produce more than this allowance, then they buy an allowance from
another firm that has not reached it's quota on how much it can produce
in one year! Get it?
Emissions Trading is particularly suited to the emissions of greenhouse
gases, the gases responsible for global warming, which have the same effect
wherever they are emitted.
Emissions of carbon dioxide - a greenhouse gas - are widely thought to
be a key factor in global warming, and increasing atmospheric temperatures
around the world.
The idea of the carbon-trading scheme was to raise the cost to firms of
continuing to pollute while creating a market to give an incentive to
become more environmentally efficient. They are traded in a similar way
to buying and selling shares, there are a number of companies that offer
the buying and selling of carbon units and many offer different commissions
and even free trading if you shop around. I even saw one firm that offered
a one stop shopping for Renewable Energy, Biodiversity, and Greenhouse
Gas. Its like an online retailer but for things you can't touch. Ill have
2 pounds of apples, a bag of potatoes and a Biodiversity credit please!!!
On an international level countries are able to deal in carbon trading
The potential benefits of such a system for developing countries would
be that poorer, developing countries can sell there surplus carbon dioxide
to richer countries. This income could stimulate much needed economic
growth. They could also achieve their Kyoto commitments at the lowest
possible cost as the money needed to invest in cleaner technology can
be funded by the trading on carbon units. Countries like the USA and UK
could pay the countries in Africa to reforest there lands, this reduction
in carbon dioxide in the planet would then allow USA/UK firms to emit
extra carbon dioxide into the atmosphere. It would probably be cheaper
to reforest parts of Africa then to buy state of the art cleaner technology
for firms in the West. How many trees could you plant for a million dollars/pounds
in Africa?
The cost of cleaner technology in the West obviously varies from industry
to industry, size of the company, technological advances available etc
but surely a company would not trade CO2 unless we were talking big money.
Carbon trading sounds a bit strange to me, as you are trading air, but
if this leads to more trees being planted and a reduction in climate change
- Im all for it!
Davis Green is the founder of the Green and Ethical business
http://www.guidemegreen.com
. This growing green resource lists 100s of Organic, Fairtrade, Eco and
Ethical companies. We even have Green jobs and a Green Forum!
