The US Climate Action Partnership

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. (more…)

Emissions Trading System - Transfer, Allowances and Penalty

The aim of emission trading is to achieve emissions reductions at the lowest economic cost. Emission trading occurs when a factory reduces its emissions and environmental impact and then transfers ownership of the emission reduction to another party. Emission allowances are typically given by regulators to large sources of pollution, and allow those sources to release a prescribed amount of a pollutant. Surplus allowances can be sold, traded, or banked for future use. (more…)