The Carbon Trading Idea
We may or may not be familiar with the concept of carbon trading. Those who have heard of it might not know what it is about & how it works to reduce the carbons being given off to the atmosphere.
So how does the carbon emissions trading scheme work? A government basically figures out the amount carbon emissions are transmitted into the air by each industry. It then lowers the total share to meet their international duties. Each company has to then meet the lowered target or pay a fee based on how much they have exceeded. When an industry reduces its emissions below the level, it can sell their unused amount to other companies who may need more carbon credits to avoid fees.
So how are these companies suddenly shrinking their carbon emissions? How are these lowered emissions enough to respect the government’s requirements and still be enough to allow them to sell to their contemporaries as carbon trades? You’d think if it is possible today, it is most likely possible then. The fact of the matter is, industries are more likely to be more sensitive to these issues when there are fines imposed.
There is 1 fatal flaw however-carbon trading can & most likely will affect the masses. Because companies might suffer from big fines arising from carbon trading, these industries can charge the consumers so their profit is still present even if they pay fines. 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 already helped the environment a lot. 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 comparative to 2003 (78 tCO2e).
Discover more about Carbon Trading and Carbon Offset and get a deeper understanding on how you can help in saving the environment.
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