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Emissions Trading: Difference between revisions
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===Emission Trading Scheme: a way to reduce the climate change and the effects of the global warming === | ===Emission Trading Scheme: a way to reduce the climate change and the effects of the global warming? === | ||
=====First version of the case study===== | =====First version of the case study===== | ||
====How effectively and safe is Emissions trading==== | ====How effectively and safe is Emissions trading==== | ||
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The basic principle of carbon markets is that companies have a limited right to emit greenhouse gases in the atmosphere. The company can use these rights to emit itself or they sell their right and another company which has not enough emissions rights. At the consequence companies which have a very clean production can make additional money with the selling of their emissions rights. This is the central point where criminals see a way to make some money with the theft of emissions rights. | The basic principle of carbon markets is that companies have a limited right to emit greenhouse gases in the atmosphere. The company can use these rights to emit itself or they sell their right and another company which has not enough emissions rights. At the consequence companies which have a very clean production can make additional money with the selling of their emissions rights. This is the central point where criminals see a way to make some money with the theft of emissions rights. | ||
In the literature have carbon market the following definition in general: | In the literature have carbon market the following definition in general: | ||
„Carbon markets are primarily aimed at dealing with the problem of increasing concentrations of greenhouse gases in the atmosphere due to human activities. Carbon markets can also be attributed to technological and industry development, as well as a new area for employment growth.“ <ref> <br> Singhal, Neeraj and Gupta, Himani. 2011. Carbon Credit Currency for the Future. [book auth.] Walter Leal Filho. The Economic, Social and Political Elements of Climate Change. Berlin, Heidelberg : Springer-Verlag, 2011, p. 209 </ref> | |||
To get an impression about the size of this market I will show some figures of the market: | To get an impression about the size of this market I will show some figures of the market: | ||
„The carbon market was valued at $1 billion in 2004 and reached $11 billion during 2005, with $8 billion from EUETS and $3 billion from primary CDM projects. The market reached $31 billion in 2006 and $64 billion in 2007, with $50 billion from EUETS, $7 billion from the primary CDM market, $5 billion from the secondary CDM market, and $2 billion from other markets. The market reached $120 billion in 2008, which is 120 times more than the 2004 figure of $1 billion.“ <ref> <br> Singhal, Neeraj and Gupta, Himani. 2011. Carbon Credit Currency for the Future. [book auth.] Walter Leal Filho. The Economic, Social and Political Elements of Climate Change. Berlin, Heidelberg : Springer-Verlag, 2011, p. 209 </ref> | „The carbon market was valued at $1 billion in 2004 and reached $11 billion during 2005, with $8 billion from EUETS and $3 billion from primary CDM projects. The market reached $31 billion in 2006 and $64 billion in 2007, with $50 billion from EUETS, $7 billion from the primary CDM market, $5 billion from the secondary CDM market, and $2 billion from other markets. The market reached $120 billion in 2008, which is 120 times more than the 2004 figure of $1 billion.“ <ref> <br> Singhal, Neeraj and Gupta, Himani. 2011. Carbon Credit Currency for the Future. [book auth.] Walter Leal Filho. The Economic, Social and Political Elements of Climate Change. Berlin, Heidelberg : Springer-Verlag, 2011, p. 209 </ref> | ||
As we see has the market a volume of billions a dollars and it’s a lucrative field of activity for criminal groups. | As we see has the market a volume of billions a dollars and it’s a lucrative field of activity for criminal groups. | ||
To see some details about the basics of this market I will provide the following paragraph about the possibilities of Carbon credits and the emissions trading scheme. | To see some details about the basics of this market I will provide the following paragraph about the possibilities of Carbon credits and the emissions trading scheme. | ||
„Carbon credits are a key component of national and international emissions trading schemes. They provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price. Credits can be used to finance carbon reduction schemes between trading partners and around the world.“ <ref> <br> Singhal, Neeraj and Gupta, Himani. 2011. Carbon Credit Currency for the Future. [book auth.] Walter Leal Filho. The Economic, Social and Political Elements of Climate Change. Berlin, Heidelberg : Springer-Verlag, 2011, p. 210 </ref> | |||
And actual is the emission trading scheme is one of the important instruments of the European Union to reduce the greenhouse gasses by 8 percent. As in arrange in the Kyoto Protocol. | And actual is the emission trading scheme is one of the important instruments of the European Union to reduce the greenhouse gasses by 8 percent. As in arrange in the Kyoto Protocol. | ||
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To show the distribution of the certificates from the governments to the companies I found the following paragraph in the book source: | To show the distribution of the certificates from the governments to the companies I found the following paragraph in the book source: | ||
„Operators of large energy production plants or energy-intensive industrial companies are assigned a predetermined number of emissions certificates by their governments. These initial certificates are free, and authorize the companies to emit a specific amount of CO2. If a company exceeds its allowance it must buy in additional certificates. When a company reduces its emissions, it can sell its excess certificates for profit. Companies face penalties when they do not acquire enough certificates to balance out the CO2 they have emitted.“ <ref> <br> Singhal, Neeraj and Gupta, Himani. 2011. Carbon Credit Currency for the Future. [book auth.] Walter Leal Filho. The Economic, Social and Political Elements of Climate Change. Berlin, Heidelberg : Springer-Verlag, 2011, p. 210 </ref> | |||
The transition to the key issues is: | The transition to the key issues is: | ||
„Carbon credits are a key component of national and international emissions trading schemes. They provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading.“ <ref> <br> Singhal, Neeraj and Gupta, Himani. 2011. Carbon Credit Currency for the Future. [book auth.] Walter Leal Filho. The Economic, Social and Political Elements of Climate Change. Berlin, Heidelberg : Springer-Verlag, 2011, p. 210 </ref> | |||
So it’s a key business for companies to reduce their greenhouse gas emissions and to sell their carbon credits to other companies witch need carbon credits because of their high polluting production or realized production extensions. | So it’s a key business for companies to reduce their greenhouse gas emissions and to sell their carbon credits to other companies witch need carbon credits because of their high polluting production or realized production extensions. | ||