Voluntary Emissions Trading

Investigate Voluntary Emissions Trading

There has been a regular drumbeat of information and a variety of dramatic reports have emerged to jointly remind us of our obligations to reduce our carbon footprint. Conspicuous consumption and a total disregard for the environment has caused a level of greenhouse gas emissions resulting in the potential of catastrophic climate change, we are told.

As a business leader, you must have had your head in the sand if you did not hear this information being leveled squarely at you. Companies of all shapes and sizes are now ensuring that they pursue corporate sustainability and in advance of any mandatory requirement, many are seeking to engage in voluntary emissions trading and other measures.

It is little wonder that the voluntary emissions trading market is growing in leaps and bounds and is doubling in size every year. Trading voluntarily on the carbon market exhibits a will to be seen as a leader in your business market and has considerable political and reputational capital to boot.

While only 15% of companies surveyed by The Conference Board in 2006 actively engage in voluntary emissions trading, a further 40% are considering engagement. When you consider that a full 75% are actively measuring the size of their carbon footprint, then it appears that there is considerable potential for an explosion in the volume of voluntary emissions trading.

Organizations Should Be Involved in Voluntary Carbon Market After Carbon Accurate Emissions Measure are Already in Place

Currently it is possible to engage in a number of projects enabling you to buy carbon offsets, ranging from methane capture to reforestation to renewable energy sources. However, as those who are starting out in the realm of voluntary emissions trading are finding out, the market is very fragmented and is plagued by a number of wildly differing standards. It seems worthwhile to persevere, however, as it is highly likely that mandatory restrictions will be imposed and that carbon will become a tradable commodity with caps set and market prices to dictate availability. There is a considerable potential impact for an enterprise down the road.

Organizations should participate in the voluntary carbon market only after putting in place procedures to measure emissions accurately. There are a variety of offset offerings and providers should be selected carefully.

Participation in Voluntary Emissions Trading Can be Beneficial When Mandatory Regulation Arrives

In North America, only the Chicago Climate Change operates a voluntary, yet legally binding trading system dedicated to the six major greenhouse gases. Offset projects worldwide are included and an enterprise would do well to study this exchange thoroughly. Advocates maintain that participation could be viewed as beneficial when mandatory regulation arrives through some kind of recognition for early involvement. Critics however maintain that additionality requirements for offsets are not stringent enough, meaning that it is not clear that the benefits obtained by the offset would not have been realized in any case.

Elsewhere, the Clean Development Mechanism is a product of the Kyoto Protocol and has been particularly effective in developing offset programs in developing markets.

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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