Carbon Trading Benefits
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 and how it contributes in reducing the carbons being given off into the atmosphere.
So how does the carbon emissions trading scheme work? An administration basically figures 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 company has to then meet the lowered target or pay a fine depending on how much they have exceeded. When a company reduces 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 carbon emissions? How are these lowered emissions enough to respect the authorities’ requirements and still be enough to allow the company to sell to other industries as carbon offsets? You’d think if it is possible nowadays, it is most likely possible then. The thing here is, companies are more probable to be more sensitive to these issues when money is involved.
There is 1 unfortunate blemish however: carbon trading can & most likely will affect the masses. Because companies might suffer from big fines coming from carbon trading, these companies can charge the consumers so they can still pay fines without affecting their profit. There is still room for betterment, of course, since carbon trading is still a new idea not many people know of.
The good thing about carbon trading however, is that even if it is not 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 through projects in 2005. It shows a 240% increase relative to 2004 (110 tCO2e) which was itself already a 41% increase comparative to 2003 (78 tCO2e).
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