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Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). Carbon emission trading for CO2 and other greenhouse gases has been introduced in China, the European Union and other countries as a key tool for climate change mitigation. Other schemes include sulfur dioxide and other pollutants.
Carbon neutrality is a state of net-zero carbon dioxide emissions. This can be achieved by balancing emissions of carbon dioxide with its removal or by eliminating emissions from society. The term is used in the context of carbon dioxide-releasing processes associated with transportation, energy production, agriculture, and industry.
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e).
The Clean Development Mechanism (CDM) is a United Nations-run carbon offset scheme allowing countries to fund greenhouse gas emissions-reducing projects in other countries and claim the saved emissions as part of their own efforts to meet international emissions targets. It is one of the three Flexible Mechanisms defined in the Kyoto Protocol. The CDM, defined in Article 12 of the Protocol, was intended to meet two objectives: (1) to assist non-Annex I countries achieve sustainable development and reduce their carbon footprints; and (2) to assist Annex I countries in achieving compliance with their emissions reduction commitments.
A carbon offset is a reduction or removal of emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere. Offsets are measured in tonnes of carbon dioxide-equivalent (CO2e). One ton of carbon offset represents the reduction or removal of one ton of carbon dioxide or its equivalent in other greenhouse gases. Both the Oxford Principles for Net Zero Aligned Offsetting and the Science Based Targets initiative's Net-Zero Criteria argue for the importance of moving beyond offsets based on reduced or avoided emissions to offsets based on carbon that has been sequestered from the atmosphere, such as CO2 Removal Certificates (CORCs).
The European Union Emissions Trading System, was the first large greenhouse gas emissions trading scheme in the world. It was launched in 2005 to fight global warming and is a major pillar of EU energy policy. As of 2013, the EU ETS covers more than 11,000 factories, power stations, and other installations with a net heat excess of 20 MW in 31 countries—all 27 EU member states plus Iceland, Norway, Liechtenstein and United Kingdom. In 2008, the installations regulated by the EU ETS were collectively responsible for close to half of the EU's anthropogenic emissions of CO2 and 40% of its total greenhouse gas emissions. The EU had set a target for 2020 to cut greenhouse gas emissions by 20% compared with 1990, to reduce energy consumption by 20% compared to the 2007 baseline scenario, and to achieve a 20% share of gross final energy consumption from renewable energy sources - all of which was achieved. A 2020 study estimated that the EU ETS had reduced CO2 emissions by more than 1 billion tons between 2008 and 2016 or 3.8% of total EU-wide emissions.
Business action on climate change includes a range of activities relating to global warming, and to influencing political decisions on global-warming-related regulation, such as the Kyoto Protocol. Major multinationals have played and to some extent continue to play a significant role in the politics of global warming, especially in the United States, through lobbying of government and funding of global warming deniers. Business also plays a key role in the mitigation of global warming, through decisions to invest in researching and implementing new energy technologies and energy efficiency measures.
Various energy conservation measures are taken in the United Kingdom.
Carbon rationing, as a means of reducing CO2 emissions to contain climate change, could take any of several forms. One of them, personal carbon trading, is the generic term for a number of proposed emissions trading schemes under which emissions credits would be allocated to adult individuals on a (broadly) equal per capita basis, within national carbon budgets. Individuals then surrender these credits when buying fuel or electricity. Individuals wanting or needing to emit at a level above that permitted by their initial allocation would be able to purchase additional credits in the personal carbon market from those using less, creating a profit for those individuals who emit at a level below that permitted by their initial allocation.
The Global Warming Solutions Act of 2006, or Assembly Bill (AB) 32, is a California State Law that fights global warming by establishing a comprehensive program to reduce greenhouse gas emissions from all sources throughout the state. AB32 was co-authored by then-Assemblymember Fran Pavley and then-Speaker of the California Assembly Fabian Nunez and signed into law by Governor Arnold Schwarzenegger on September 27, 2006.
Energy Saving Trust (EST) is a British organization devoted to promoting energy efficiency, energy conservation, and the sustainable use of energy, thereby reducing carbon dioxide emissions and helping to prevent man-made climate change. It was founded in the United Kingdom as a government-sponsored initiative in 1992, following the global Earth Summit.
The CRC Energy Efficiency Scheme was a mandatory carbon emissions reduction scheme in the United Kingdom which applied to large energy-intensive organisations in the public and private sectors. It was estimated that the scheme would reduce carbon emissions by 1.2 million tonnes of carbon per year by 2020. In an effort to avoid dangerous climate change, the British Government first committed to cutting UK carbon emissions by 60% by 2050, and in October 2008 increased this commitment to 80%. The scheme has also been credited with driving up demand for energy-efficient goods and services.
Green electricity in the United Kingdom. There are a number of suppliers offering green electricity in the United Kingdom. In theory these types of tariffs help to lower carbon dioxide emissions by increasing consumer demand for green electricity and encouraging more renewable energy plant to be built. Since Ofgem's 2014 regulations there are now set criteria defining what can be classified as a green source product. As well as holding sufficient guarantee of origin certificates to cover the electricity sold to consumers, suppliers are also required to show additionality by contributing to wider environmental and low carbon funds.
EU Allowances (EUA) are climate credits (or carbon credits) used in the European Union Emissions Trading Scheme (EU ETS). EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of installations covered by the EU ETS must surrender an EU Allowance for each ton of CO2 emitted in the previous year. The emission allowance is defined in Article 3(a) of the EU ETS Directive as being "an allowance to emit one tonne of carbon dioxide equivalent during a specified period, which shall be valid only for the purposes of meeting the requirements of this Directive and shall be transferable in accordance with the provisions of this Directive".
The UK Emissions Trading Scheme is the carbon emission trading scheme of the United Kingdom. It is cap and trade and came into operation on 1 January 2021 following the UK's departure from the European Union. The cap is reduced in line with the UK's 2050 net zero commitment.
Emission trading (ETS) for carbon dioxide (CO2) and other greenhouse gases (GHG) is a form of carbon pricing; also known as cap and trade (CAT) or carbon pricing. It is an approach to limit climate change by creating a market with limited allowances for emissions. This can lower competitiveness of fossil fuels and accelerate investments into low carbon sources of energy such as wind power and photovoltaics. Fossil fuels are the main driver for climate change. They account for 89% of all CO2 emissions and 68% of all GHG emissions.
The Chinese national carbon trading scheme is an intensity-based trading system for carbon dioxide emissions by China, which started operating in 2021. This emission trading scheme (ETS) creates a carbon market where emitters can buy and sell emission credits. From this scheme, China can limit emissions, but allow economic freedom for emitters to reduce emissions or purchase emission allowances from other emitters. China is the largest emitter of greenhouse gases (GHG) and many major Chinese cities have severe air pollution. The scheme is run by the Ministry of Ecology and Environment, which eventually plans to limit emissions from six of China's top carbon dioxide emitting industries. In 2021 it started with its power plants, and covers 40% of China's emissions, which is 15% of world emissions. China was able to gain experience in drafting and implementation of an ETS plan from the United Nations Framework Convention on Climate Change (UNFCCC), where China was part of the Clean Development Mechanism (CDM). From this experience with carbon markets, and lengthy discussions with the next largest carbon market, the European Union (EU), as well as analysis of small scale pilot markets in major Chinese cities and provinces, China's national ETS is the largest of its kind and will help China achieve its Nationally Determined Contribution (NDC) to the Paris Agreement. In July 2021 permits were being handed out for free rather than auctioned, and the market price per tonne of CO2e was around RMB 50, far less than the EU ETS and the UK ETS.
The American Clean Energy and Security Act of 2009 (ACES) was an energy bill in the 111th United States Congress that would have established a variant of an emissions trading plan similar to the European Union Emission Trading Scheme. The bill was approved by the House of Representatives on June 26, 2009 by a vote of 219–212, but was never brought to the floor of the Senate for discussion or a vote.
Although it is a worldwide treaty, the Kyoto Protocol has received criticism.
Individual action on climate change can include personal choices in many areas, such as diet, means of long- and short-distance travel, household energy use, consumption of goods and services, and family size. Individuals can also engage in local and political advocacy around issues of climate change.
References
- ↑ Sarah Butler (2011-04-17). "Carbon cowboys ride again". The Sunday Times. Archived from the original on July 30, 2013. Retrieved 2011-05-13.
- ↑ "Report: FTSE-100 offsets just 0.1 per cent of carbon emissions - 18 Apr 2011 - News from". BusinessGreen. 2011-04-18. Retrieved 2011-05-13.
- ↑ "Lifetime Allowance Cut to £1m" . Retrieved 24 May 2016.
- ↑ Kahya, Damian (2011-03-07). "BBC News - Carbon tax 'may not reduce CO2'". BBC News. Retrieved 2011-05-13.
- ↑ Fiona Harvey (2011-02-10). "UK nets €1bn in carbon permit auctions | Environment | guardian.co.uk". London: Guardian. Retrieved 2011-05-13.
- ↑ Kahya, Damian (2009-12-07). "'30% of carbon offsets' spent on reducing emissions". BBC News. Retrieved 2011-05-13.