International Emissions Trading Helps The Environment
by Daniel Stouffer
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.
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.
Countries around the world are looking at a number of initiatives in the effort to reduce global warming. Laws and treaties have been introduced in the United States and other countries with the goal of reducing air pollution. Several chemicals are known to be major contributors: hydrochlorofluorocarbons, chlorofluorocarbons, perfluorocarbons, carbon dioxide, in particular. Certain products are being phased out in this effort, including refrigerant gas used in heating, ventilation and air-conditioning systems and commercial refrigeration and air-conditioning 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.
