Emissions Trading: The Solution
Recently, scientific and public opinion has come to the conclusion that there is an excessive accumulation of Greenhouse Gases (GHGs), especially carbon dioxide, in our atmosphere, and that high concentrations of these gases will fundamentally change our climate dangerously in the foreseeable future. The "low-carbon economy" refers to a global economy which has a minimal output of GHG emissions into the biosphere.
The Kyoto Protocol describes a 'cap and trade' system that imposes national limits on the GHG emissions of developed countries, and where the rights to emit GHGs become a tradable commodity. On average, the current limit requires developed countries to reduce their emissions 5.2% below their 1990 baseline over the 2008 to 2012 period. Although these limits are national-level commitments, in practice most countries devolve their emissions targets to individual industrial entities, such as power plants and large factories. The ultimate buyers of emissions credits are individual companies that expect their emissions to exceed their allowed quota, or other individuals or organizations that wish to offset the emissions their activities cause.
If a properly regulated and administered cap and trade system operates in a low carbon economy, then the worst effects of climate change can be avoided, and economic development can occur in a sustainable fashion. Biosphere Capital aims to help companies, organizations and individuals prosper and create economic value while participating in the low carbon economy.