Carbon Fund

Carbon Fund

  • Submitted By: raveesh0070
  • Date Submitted: 11/29/2008 6:20 AM
  • Category: Business
  • Words: 5171
  • Page: 21
  • Views: 829

EXECUTIVE SUMMARY Can Current Carbon Trading Schemes Be Effective in Helping Companies to Carry Out Socially Responsible Practices? Over last 100 years see a tendency of global warming as average global surface temperature has risen by about 0.74℃. It is very likely that the rising level of carbon dioxide in the atmosphere is the cause of climate change, according to the Intergovernmental Panel on Climate Change. As fossil fuels may still remain the main source of power in an increasingly energy-hungry world for decades to come, people have taken some measures including constituting some carbon trading schemes in order to tackle global warming. Cap-and-trade is one kind of scheme according to which carbon emissions are limited and can be traded. Following ETS, which is the largest cap-and-trade mandatory scheme, one of the involved companies Drax will undertake a project to reblade its turbines and may cut the amount of CO2 generation by one million tonnes per year. There are also voluntary cap-and-trade schemes such as CCX that hammer at CO2 emission reduction. Ford, which participated in this scheme, cut its CO2 emissions by nearly 23 percent in 2003. Another kind is called carbon emission offsetting scheme including CDM and JI, in which companies can receive credits from compensation projects for emissions. There are various ways for companies to offset emissions. For instance, Ambio, which has carried out some afforestation and reforestation projects in southern Mexico, may help to offset almost 30,000t CO2 over a 100 year period. Others such as renewable energy development, energy conservation and financing emissions reduction projects in other countries can also be used for carbon offsetting. Though carbon trading schemes may have taken some positive steps to tackle human-induced climate change, in practice, there are still a number of problems as it may not be as efficient and reliable as people have expected. Some cap-and-trade schemes such as ETS...

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