BHG Articles

What began as a concept to address adverse climate change is soon to become a reality. International emissions trading is part of several global protocols as a means of controlling the costs of reducing greenhouse gas emissions. The intent is to allow enterprises to trade unused emissions in much the same manner that other commodities are traded on the global market.

By offering economic incentives, which aim to reduce gas emissions, it is hoped that air pollution will be in part controlled. There are a number of international emissions trading markets in place around the world, which have been implemented prior to the advancement of regulation.

With international emissions trading, a governing body sets a cap on pollution emissions and provides companies with credits that allow them to emit a specific amount of environmentally harmful gases. An enterprise that does not use their allocation can sell the unneeded credits to another company that needs to increase its emissions output. The process is commonly known as cap and trade.

A cap and trade system is not a new concept. It was used for the first time in the U.S. as part of its Acid Rain program. The European Union currently uses the system to reduce carbon emissions. As part of the global treaties to control greenhouse gases, a cap and trade system is expected to lower carbon emissions.

Tracking software is available to help a company in the complex task of tracking their cabin footprint in real-time. The software takes inventory of indirect and direct greenhouse gas, showing a company’s impact on the surrounding environment and allowing them to identify areas of reduction amid overall management.

International emissions trading is good for the overall environment. It encourages companies to pollute less, as they are rewarded for their efforts, whilst those companies that see increased emissions, pay appropriately. The overall concept encourages the lowering of emissions due to financial penalties and should aid in the effort to reduce global warming.

Countries are implementing a number of initiatives to control global warming. In the U.S. and several foreign countries, laws and treaties have been established to reduce air pollution. The main focus is to reduce the use of chemicals that lead to global warming. These greenhouse gases include carbon dioxide, hydrochlorofluorocarbons (HCFCs), chlorofluorocarbons (CFCs) and perfluorocarbons (PFCs). Part of the regulation is eliminating products that contain these gases, such as the ongoing phase out of refrigerant gas used in commercial refrigeration and air conditioning (RAC) systems and heating, ventilation and air conditioning (HVAC) systems.

The concept of international emissions trading is seen as being a great example of free-market environmentalism. As companies are very often driven by cost savings, it is anticipated that they will voluntarily implement emission reduction methods, within the limits set by the governing agency.