Skip to main content

Cap and Trade: A real solution or a problem?

Environmental issues such as global warming have reached its alarming stage which made the entire world investing extra efforts to resolve it. One of the solutions that nations considered is the “cap and trade system”. Cap and Trade is a regulatory system which allows pollution emitters to trade pollution permits, and allowances among themselves. It aims to reduce emissions of carbon dioxide and other greenhouse gases by defining limits on the said emissions.

How it works?

The government sets a cap (annual limit), deciding how much pollution in total is allowable for industry and commercial sectors. Companies are given credits (allowances) and licenses depending on their industry, how large their company is, and other related factors. Then, carbon trading occurs when a company comes in below its credits. This company can then trade its extra credits with other companies needing the credits. While for other companies who go beyond their cap a penalty will be issued (referred as “pollution tax” by many).

Can it really help in solving global warming?

The benefits for the economy and environment are quiet promising if every government will provide an “effective” cap and not an overstated one. However, the bad thing here is that, cap and trade serves as a tool for other companies to pollute more instead of a system to penalize them. If the proper limit or cap is not set accordingly, it will simply works this way; Companies who pollute less can trade or sell more credits while companies who pollute more can continuously go on with their “environment-polluting” business without being penalized. Like what happened to European Union governments who have given away most permits to many companies rather than making these companies buy them (ref: nytimes.com). 

All the same, this leaves the question unanswered. It could or could not help solve global warming depending on nation’s regulation. And worst, it could result into a bigger problem for both economy and environment.
Labels:

Comments

Post a Comment

Popular posts from this blog

Importance of MRF – Material Recycling Facility

What is MRF? MRF or Material Recycling Facility also known as Material Recovery Facility integrates conveyors system which is used for material recovery or recycling. It has sorting machinery wherein it divides recyclables according to end marketable usage. Normally, there are two different types of MRF, the clean and dirty MRF’s. Significance of MRF As we know it, recycling is one method of conserving our natural environment. And MRF systems play an important role in doing the method of recycling in a large scale basis. As an essential component of innovative waste management system by means of recycling, MRF greatly helps in conserving the environment. It lessens the extraction of our natural resources thus creating a more sustainable way of manufacturing new products. Aside from that is decreases the amount of waste materials in our community thus prevents the spread of environmental contaminants that may also bring dangers in human health. MRF also offers high processin...
Post a Comment
Read more

Tree Planting as an Environment Protection

Trees have been a primary source of oxygen and other materials that we often use. Trees come with various benefits. It amends the environment by moderating the climate, it absorbs and cleanses the toxins in the air such as carbon dioxide, it conserves water and soil, and it protects not just humans but also the wildlife. Trees give us fruits and flowers; it also provides us shade during the warm weather and also fresh air, and it provides us with raw materials for the construction of buildings, houses and for other purposes. During typhoons, trees serve the environment as protection from flash floods. It helps preserve our soil and water by holding the soil in place to prevent soil erosion or landslides. Most of the products that are manufactured today are from the wonders of trees and shrubs. Without the existence of trees, our life would be endangered , the populace will suffer, and the economy will drastically collapse. Generally speaking, without trees people and wildlife will not ...
Post a Comment
Read more

9 Steps to Eating Healthy

Ever felt like you’ve neglected your body and general health for a while now? It’s never too late to curb the urge to binge and begin the journey to eating healthy. Don’t be discouraged: eating healthy is never about depriving yourself of your favourite food. Rather, it’s about learning some nutrition basics and using them in a way that works for you and your lifestyle. Here are 9 steps to take: TAKE IT SLOWLY, BUT SURELY Trying to create a healthy diet overnight isn’t at all realistic. Changing everything at one go usually leads to cheating or giving up on your meal plan. Gradual changes like adding a salad to your meals once a day or using olive oil instead of butter when cooking may be small steps, but as they become a habit, it will be easier for you to replace your usual food items with healthier choices. Think of water and exercise as part of your diet as well. Water helps flush out toxins and cleanse our bodies, while exercise has a wide range of physical (and even psychologi...
Post a Comment
Read more