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.
Environmental finance is a field within finance that employs market-based environmental policy instruments to improve the ecological impact of investment strategies. The primary objective of environmental finance is to regress the negative impacts of climate change through pricing and trading schemes. The field of environmental finance was established in response to the poor management of economic crises by government bodies globally. Environmental finance aims to reallocate a businesses resources to improve the sustainability of investments whilst also retaining profit margins.
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and private physical structures such as roads, railways, bridges, tunnels, water supply, sewers, electrical grids, and telecommunications. In general, infrastructure has been defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions" and maintain the surrounding environment.
Environmental protection is the practice of protecting the natural environment by individuals, groups and governments. Its objectives are to conserve natural resources and the existing natural environment and, where possible, to repair damage and reverse trends.
Eco-capitalism, also known as environmental capitalism or (sometimes) green capitalism, is the view that capital exists in nature as "natural capital" on which all wealth depends. Therefore, governments should use market-based policy-instruments to resolve environmental problems.
Energy policy is the manner in which a given entity has decided to address issues of energy development including energy conversion, distribution and use as well as reduction of greenhouse gas emissions in order to contribute to climate change mitigation. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques. Energy is a core component of modern economies. A functioning economy requires not only labor and capital but also energy, for manufacturing processes, transportation, communication, agriculture, and more. Energy planning is more detailed than energy policy.
Climate change mitigation is action to limit climate change by reducing emissions of greenhouse gases or removing those gases from the atmosphere. The recent rise in global average temperature is mostly caused by emissions from fossil fuels burning. Mitigation can reduce emissions by transitioning to sustainable energy sources, conserving energy, and increasing efficiency. In addition, CO2 can be removed from the atmosphere by enlarging forests, restoring wetlands and using other natural and technical processes, which are grouped together under the term of carbon sequestration.
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. A carbon credit or offset credit is a transferrable financial instrument (i.e. a derivative of an underlying commodity) certified by governments or independent certification bodies to represent an emission reduction that can then be bought or sold. Both offsets and credits are measured in tonnes of carbon dioxide-equivalent (CO2e). One carbon offset or credit represents the reduction or removal of one ton of carbon dioxide or its equivalent in other greenhouse gases.
Environmental policy is the commitment of an organization or government to the laws, regulations, and other policy mechanisms concerning environmental issues. These issues generally include air and water pollution, waste management, ecosystem management, maintenance of biodiversity, the management of natural resources, wildlife and endangered species. For example, concerning environmental policy, the implementation of an eco-energy-oriented policy at a global level to address the issues of global warming and climate changes could be addressed. Policies concerning energy or regulation of toxic substances including pesticides and many types of industrial waste are part of the topic of environmental policy. This policy can be deliberately taken to influence human activities and thereby prevent undesirable effects on the biophysical environment and natural resources, as well as to make sure that changes in the environment do not have unacceptable effects on humans.
The sustainable city, eco-city, or green city is a city designed with consideration for social, economic, environmental impact, and resilient habitat for existing populations, without compromising the ability of future generations to experience the same. The UN Sustainable Development Goal 11 defines sustainable cities as those that are dedicated to achieving green sustainability, social sustainability and economic sustainability. They are committed to doing so by enabling opportunities for all through a design focused on inclusivity as well as maintaining a sustainable economic growth. The focus also includes minimizing required inputs of energy, water, and food, and drastically reducing waste, output of heat, air pollution – CO2, methane, and water pollution. Richard Register, a visual artist, first coined the term ecocity in his 1987 book Ecocity Berkeley: Building Cities for a Healthy Future, where he offers innovative city planning solutions that would work anywhere. Other leading figures who envisioned sustainable cities are architect Paul F Downton, who later founded the company Ecopolis Pty Ltd, as well as authors Timothy Beatley and Steffen Lehmann, who have written extensively on the subject. The field of industrial ecology is sometimes used in planning these cities.
Carbon accounting is a framework of methods to measure and track how much greenhouse gas (GHG) an organization emits. It can also be used to track projects or actions to reduce emissions in sectors such as forestry or renewable energy. Corporations, cities and other groups use these techniques to help limit climate change. Organizations will often set an emissions baseline, create targets for reducing emissions, and track progress towards them. The accounting methods enable them to do this in a more consistent and transparent manner.
The United States produced 5.2 billion metric tons of carbon dioxide equivalent greenhouse gas (GHG) emissions in 2020, the second largest in the world after greenhouse gas emissions by China and among the countries with the highest greenhouse gas emissions per person. In 2019 China is estimated to have emitted 27% of world GHG, followed by the United States with 11%, then India with 6.6%. In total the United States has emitted a quarter of world GHG, more than any other country. Annual emissions are over 15 tons per person and, amongst the top eight emitters, is the highest country by greenhouse gas emissions per person. However, the IEA estimates that the richest decile in the US emits over 55 tonnes of CO2 per capita each year. Because coal-fired power stations are gradually shutting down, in the 2010s emissions from electricity generation fell to second place behind transportation which is now the largest single source. In 2020, 27% of the GHG emissions of the United States were from transportation, 25% from electricity, 24% from industry, 13% from commercial and residential buildings and 11% from agriculture. In 2021, the electric power sector was the second largest source of U.S. greenhouse gas emissions, accounting for 25% of the U.S. total. These greenhouse gas emissions are contributing to climate change in the United States, as well as worldwide.
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.
Sustainability is a social goal about the ability of people to co-exist on Earth over a long time. Specific definitions of this term are difficult to agree on. They have varied with literature, context, and time. Experts often describe sustainability as having three dimensions. These are environmental, economic, and social. Many publications state that the environmental dimension is the most important. So in everyday use, sustainability often focuses on countering major environmental problems. These include climate change and loss of biodiversity. They also include loss of ecosystem services, land degradation, and air and water pollution. The idea of sustainability can guide decisions at the global, national, and individual levels. A related concept is sustainable development, and the terms are often used to mean the same thing. UNESCO distinguishes the two like this: "Sustainability is often thought of as a long-term goal, while sustainable development refers to the many processes and pathways to achieve it."
Climate change is having major effects on the Chinese economy, society and the environment. China is the largest emitter of carbon dioxide, through an energy infrastructure heavily focused on coal. Other industries, such as a burgeoning construction industry and industrial manufacturing, contribute heavily to carbon emissions. However, like other developing countries, on a per-capita basis, China's carbon emissions are considerably less than countries like the United States. It has also been noted that higher-income countries have outsourced emissions-intensive industries to China. On the basis of cumulative CO2 emissions measured from 1751 through to 2017, China is responsible for 13% globally and about half of the United States' cumulative emissions.
The climate change policy of the United States has major impacts on global climate change and global climate change mitigation. This is because the United States is the second largest emitter of greenhouse gasses in the world after China, and is among the countries with the highest greenhouse gas emissions per person in the world. In total, the United States has emitted over 400 billion metric tons of greenhouse gasses, more than any country in the world.
The economics of climate change mitigation is the part of the economics of climate change related to climate change mitigation, that is actions that are designed to limit the amount of long-term climate change. Mitigation may be achieved through the reduction of greenhouse gas (GHG) emissions and the enhancement of sinks that absorb GHGs, for example forests.
The, United States Environmental Protection Agency (EPA) began regulating greenhouse gases (GHGs) under the Clean Air Act from mobile and stationary sources of air pollution for the first time on January 2, 2011. Standards for mobile sources have been established pursuant to Section 202 of the CAA, and GHGs from stationary sources are currently controlled under the authority of Part C of Title I of the Act. The basis for regulations was upheld in the United States Court of Appeals for the District of Columbia in June 2012.
Foreign direct investment and the environment involves international businesses and their interactions and impact on the natural world. These interactions can be observed through the stringency applied to foreign direct investment policy and the responsiveness of capital or labor incentive for investment inflows. The laws and regulations created by a country that focuses on environmental regimes can directly impact the levels of competition involving foreign direct investment they are exposed to. Fiscal and financial incentives stemming from ecological motivators, such as carbon taxation, are methods used based on the desired outcome within a country in order to attract foreign direct investment.
As the most populus state in the United States, California's climate policies influence both global climate change and federal climate policy. In line with the views of climate scientists, the state of California has progressively passed emission-reduction legislation.
