Ten industry giants – with business operations spanning the utilities, manufacturing, chemicals and financial-services sector – joined forces with four environmental groups to pressure for setting mandatory limits on CO2 emissions. The group calls for a market based emission trading program. Under a ‘cap and trade’ system, the Government gives or sells permits to business, allowing them certain levels of green house gases emissions. Companies that emit less than allowed get credits they can then sell to companies that need them to meet the standard because they are emitting more than their designated amounts.
As of now, the US has a voluntary emission–trading system through the Chicago Climate Exchange (CCX). CCX is the first US pilot program for voluntary trading of GHG emissions which, apart from emissions trading among emitters, also provides for offset projects in North America and limited offset projects in Brazil. Starting from an already existing regional SO2 trading scheme, the project aims at extending the latter by GHG emissions trading.
The coalition is aiming to reduce GHG emissions by 10 % to 30 % over next 15 years.
This coalition presents a strong sign that climate change debate has become less of a debate and more of a consensus. Expanding the GHG market into a global market is believed among industrialists, will ensure that the climate change is being addressed effectively and efficiently and will stimulate innovation in addressing the climate change.
