We may or may not be familiar with the concept of carbon trading. We may have heard of it, but not know what it is about & how it contributes in lowering the carbons being given off into the air.
The carbon emissions trading scheme works pretty easily. An administration basically works out how much carbon emissions are transmitted into the air by every industry. It then lowers the total percentage to meet their international responsibilities. Each industry has to then meet the lowered target or pay a fine based on how much they have exceeded. When a company cuts its emissions below the level, it can sell their unused amount to other companies who may need more credits to avoid fees.
So how are these companies suddenly shrinking their emissions? How are these lowered emissions enough to respect the authorities' prerequisites & still be enough to allow the business to sell to other companies as carbon trades? You'd think if it is possible today, it is most likely possible back then. The thing here is, industries are more probable to be more sensitive to these issues when money is involved.
There is one poor flaw however-carbon trading can and most likely will affect the people. Because industries might suffer from big fines arising from carbon trading, they can charge the consumers so they can still pay fines without affecting their profit. There is still room for betterment, of course, because carbon trading is generally a new idea not many are too familiar with.
The good thing about carbon trading however, is that even if it isn't a perfected process, it has helped the environment a great deal already. World Bank's Carbon Finance Unit has stated that 374 million metric tonnes of carbon dioxide equivalent (tCO2e) were exchanged in projects in 2005. It shows a 240% increase comparative to 2004 (110 tCO2e) which was itself already a 41% increase compared to 2003 (78 tCO2e). - 16890
The carbon emissions trading scheme works pretty easily. An administration basically works out how much carbon emissions are transmitted into the air by every industry. It then lowers the total percentage to meet their international responsibilities. Each industry has to then meet the lowered target or pay a fine based on how much they have exceeded. When a company cuts its emissions below the level, it can sell their unused amount to other companies who may need more credits to avoid fees.
So how are these companies suddenly shrinking their emissions? How are these lowered emissions enough to respect the authorities' prerequisites & still be enough to allow the business to sell to other companies as carbon trades? You'd think if it is possible today, it is most likely possible back then. The thing here is, industries are more probable to be more sensitive to these issues when money is involved.
There is one poor flaw however-carbon trading can and most likely will affect the people. Because industries might suffer from big fines arising from carbon trading, they can charge the consumers so they can still pay fines without affecting their profit. There is still room for betterment, of course, because carbon trading is generally a new idea not many are too familiar with.
The good thing about carbon trading however, is that even if it isn't a perfected process, it has helped the environment a great deal already. World Bank's Carbon Finance Unit has stated that 374 million metric tonnes of carbon dioxide equivalent (tCO2e) were exchanged in projects in 2005. It shows a 240% increase comparative to 2004 (110 tCO2e) which was itself already a 41% increase compared to 2003 (78 tCO2e). - 16890
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