Cap and Trade Carbon System

Is a Cap and Trade Carbon System the Right Approach?

Ever since the slow realization set in and we began to understand that our conspicuous consumption over the decades has led to serious damage to our environment, as a society we have been looking for ways to turn it around. Certainly, the problem is gigantic as we are very reliant on the use of fossil fuels for our energy. The subsequent emission of dangerous greenhouse gases has caused a considerable problem and must be addressed.

While the majority of us can agree that something needs to be done about greenhouse gas damage to our environment and the adverse climate effects, it will almost certainly take legal action on the behalf of governments to make any change whatsoever. Some are already moving in this direction, as in the United Kingdom a cap and trade carbon system has been introduced to force the largest consumers to cut back on their conventional methods and their output of these dangerous gases.

The cap and trade carbon system recently introduced in the UK is known as the Carbon Reduction Commitment and the legislation is aimed at the largest producers. Over a period of time a limit is to be placed on the amount of carbon emissions considered safe and each individual organization will have to trade allowances with the government to be able to emit carbon gases at all.

A cap and trade carbon system is a development of a scheme that has been in existence for some time now. The concept of setting a limit and forcing those consumers to trade in the marketplace to achieve overall reduction is not a new one, but the establishment of a commodity price for carbon emissions is. Many eyes are on the British initiative to see how it works, as it is likely to be adopted in similar format in many other countries.

Carbon Reduction Commitment Will Help Ensure that Environmental Degradation Will Be Curtailed

The British government has decided that approximately 5,000 companies in the country are major producers of greenhouse gases due to their consumption of energy. Within a couple of years, each of these companies will be required to actively reduce their carbon footprint as part of the cap and trade carbon system. Those that do not, will find that they face an increasing cost as they purchase their carbon allowances and will also find that their underperformance will be communicated to society as a whole.

The Carbon Reduction Commitment has set goals of reducing the overall level of emissions each year up until 2050, by which time the intention is that carbon emissions will have been reduced by 80%. It is felt that this kind of aggressive action is necessary to ensure that even more serious and potentially devastating damage to our environment and climate is contained.

Cap and Trade Carbon System is Seen to be Adopted by the United States

The cap and trade carbon system adopted by the British may well appear in the United States as well, as legislation being considered in mid to late 2009 seeks to adopt a similar program.

While it is unrealistic to expect companies and individuals to make significant attempts to reduce their carbon footprints without encouragement by the government, the jury is still out as to whether a cap and trade carbon system is the right approach or not.

About Verisae

Verisae helps measure, manage and reduce equipment and energy costs including the related business and environmental impacts of carbon emissions. The Sustainability Resource Planning (“SRP”) software platform improves operational efficiency, protects brand integrity and helps ensure regulatory compliance for distributed enterprises across many industries. Verisae delivers a broad range of sustainability solutions to dozens of clients globally with thousands of daily users including an extended network of third-party suppliers. Verisae’s integrated sustainability platform actively tracks millions of assets across thousands of sites worldwide.

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