Carbon trading is an emissions trading concept in which a company that has high levels of carbon emissions can borrow ‘credits’ from another company that has lower levels of carbon emissions, so that an overall compensation can occur. Let us see what this means in some more detail.
Governments of almost all countries have become highly responsible for the high amounts of carbon emissions that are being produced by the industries on their land. The concept of carbon emissions trading is a means to keep these emissions under check. The governments assess the size of their countries and the kinds of industrial needs they have, and based on that, they allocate a cap on carbon emissions for their industries. Now, every industry within the nation must only dispel carbon lower than the cap they have been allocated. If they go over the limit, they might be penalized in several ways and it is also possible that they will be shut down entirely.
So, what does a company do if it has surpassed the cap? They cannot shut down production, which means they will still be emitting carbon into the atmosphere. In order to fulfill their needs, such companies will scout for companies that haven’t yet met their Carbon Dioxide emission caps. These companies still have credits, which are then negotiated for and purchased by the companies who have surpassed their carbon emission caps. Thus, basically carbon emissions trading is a system in which companies who have a higher need of emitting carbon purchase limits from companies that do not emit as much carbon.
How does this help the natural balance? It helps because the companies, cumulatively, aren’t crossing the carbon emissions limits that are set to them by the government. Thus, on the whole, the country isn’t discharging any more carbon than the safe limit that’s accorded by their government. It is a way of maintaining the natural balance, and is also a way for smaller industries to make some money, because these are generally the industries that don’t surpass their carbon emission limits.
If you look at it one way, the whole concept seems quite absurd, because what these companies are trading are actually waste gases. However, if you think from the ecological point of view, this is a great way of ensuring that we don’t release any more carbon in the environment than it is safe to do. Though there is money-sometimes big money-involved in carbon trading, the fact remains that this is more of a monitoring method, which ensures that the natural equilibrium is maintained suitably.
The scope of carbon emissions trading isn’t just restricted to a nation. Industries of a particular country might borrow credits from industries of other countries as well. When this happens, it is generally a more technically advanced country that borrows credits from a lesser technically advanced country. Once again, it helps the poorer country economically. But, the bigger picture is that the world has become more aware of how it is tampering with nature and doing all it can to maintain the balance humankind started out with.
Kelly Hunter owns and operates http://www.wireless-indoor-outdoor-thermometer.com and also writes about Wireless Indoor Outdoor Thermometer
Article Source: http://EzineArticles.com/?expert=Kelly_Hunter
At Sceptre Group Limited, we have partnered with key companies within the carbon market to offer our clients the best quality credits available in both the voluntray and compliant markets. Sceptre is a member of the Carbon Trade Exchange in London which has develped the world’s largest electronic spot trading platform for voluntary markets. The demand for these voluntary offsets, fuelled by corporate commitments to become “carbon neutral,” is growing rapidly.
To learn more, visit www.sceptreinternational.com