Global Warming: Issues, Policies, and Implementation

What about the Carbon Trading Scheme?

Carbon emission trading scheme is a plan in which a limit is set on the amount a pollutant can be emitted and groups are given credits or allowances on how much they can emit the pollutant. As the total amount of credits cannot exceed the established limit, firms who have emission that exceeds their allowances must buy credits from those who have emission under their allowances and therefore, have spare credits. The goal is to penalize the polluter in economic terms. Such trading scheme has been praised as our most important mechanism for reducing the greenhouse gas emissions that cause climate change. Countries such as the UK also have their own carbon trading scheme. Many businesses have welcomed emissions trading as the best way to mitigate climate change. The use of market principles in emission regulation is shown to be effective as the governments do not bear most of the burden of overseeing and managing pollutant sources and amount. This self-regulating mechanism, the carbon market, is growing in popularity and is seen as a potentially highly lucrative business because there is an increasing number of companies that are looking for ways to reduce their carbon emission through research, consultancy, and innovative energy-saving and cost-efficient solutions.

What about the Carbon Market?

A sector that aims to provide improved energy efficiency and developing low carbon technology to help businesses and public organisations to reduce their emissions of carbon dioxide into the atmosphere has emerged. One example is the Carbon Trust created by the British government. Such sector is a blooming business as more importance and value has been attached to energy-related and environmental research as well as more energy-related enterprises, partnerships, and consulting firms are operating today.