Definition: Ability of our generation to maintain improvement in quality of life along with technological advancement without compromising the ability of future generations to continue these personal, national, and industrial advancements.Then equation diagramMajority of energy consumed are fossil fuels which introduce GHG’s
Sanitation – Remember the bubonic plague, black death, or the third pandemic???All of these are diseases that resulted from unsanitary conditions. (Documented from 14th to 19th centuries)The solution was to devise “waste management” which was take it out of sight and let accumulate out of mind. Due to urban sprawl, later generations will not be able to stray from our filthGlobal Warming – The buildup of energy in our atmosphere resulting in increased average air and ocean temperature. This is due to the air pollutants mentioned earlier. Even if we stop emissions and begin to stabilize the air. The ocean will radiate heat until it has reached equilibrium with the atmosphere.Energy Supply – Most obviously, as energy supply reduces, prices increase. Standard of living may be in danger. This may also result in political instability
Business Decisions: commitment of businessesGovernment standards and policies whichAll three of these components must work together to achieve sustainability
Because it appears to be more expensive in the beginning; but it ends up paying off in the long run.
Businesses are advertising their commitment to sustainability,The govt is funding research to further develop sustainable technologies. However US government policies have not been aggressive enough to promote the use of sustainable technologies.
A carbon cap is a government set limit of ghgs that an organization may emit If they exceed their cap, they must purchase credits from the open market from organizations who have excess credits.This is the trade mechanismIf the organization does not purchase more credist when they exceed their limit, they must pay a fine
These factors are based on their global warming effect of these gasses.
91-02 shows the beginning of the ETS and first 10 years of policy. Europe began trading before the Earth summit
The first graph displays the annual emission in Million Tonnes of Co2The second graph displays the kg of Co2 per GDP converted to USD. This allows for the comparison of a nations development to their emissions.Germany, Sweden, Spain utilizining various alternate energies.France with nuclear Denmark with wind mainly
US. Most emissions, but very strong economically as compared to level of emissionsJapan is strong economically strong compared to emissions as wellJapan considering cap and trade http://afp.google.com/article/ALeqM5iooNqKALvbhybDyUJPjGVF5__vywMexico may be first the developing country to adopt a cap and trade system http://www.bnamericas.com/news/waterandwaste/Govt_looking_to_implement_nationwide_cap_and_trade_market
Note that at the end of a fiscal quarter, between February and March, the market begun to glut orgs. Could get their numbers up.
Chicago Climate Exchange is trading at $1.20According to ccx projections…..
This is further evidence of how carbon cap and trade translate envronmental considerations to a financial factor.
Success:Companies adapt to the policy, reduce their emissions. Some don’t and must close, but the failure of others allows others to grow.Failure: Companies cannot adapt to the policy, experience fines or purchase too many credits. Must file for bankruptcy. If this is widespread, a recession could result or if we are not out of this recession yet, a longer and harder recession could result.
If sustainability is a complex issue and there is no easy answer,Cap and trade is only one piece of the puzzle, If the world can agree on a combination of methods and polices to promote sustainable technology and practices, there is a chance that sustainability can be met, and that the harm we as a people have impressed upon our earth can be reversed.
To piece it all together,
Carbon Credits & the Global Market
Carbon Credits &The World Trading MarketA Literature Review<br />Steven K. Srivastava<br />Western Michigan University<br />ISCSC Conference <br />June 7, 2009<br />
Evolution of Carbon Credits: Earth Summit<br />Where: Rio de Janeiro, Brazil<br />When: July 14, 1992<br />Who: Reps. from a 192 industrialized countries<br />Purpose: Address the issue of Global Warming and its link to man-made processes<br />Result: Conduct Self-Study Energy Assessment before Kyoto<br />
Evolution of Carbon Credits: Kyoto Protocol<br />Where: Kyoto, Japan<br />When: December 11, 1997<br />Who: Reps from 122 industrialized and other sponsored countries.<br />Purpose: Begin Cap-&-Trade System<br />Results: Assign annex status, set nat. caps, outline repercussions for exceeding caps <br />Copenhagen: 2012 for Post Kyoto Assessment<br />
Carbon Credits:General Function<br />C O S T <br />
Cap & Trade:Chicago Climate Exchange<br />2003: Dr. Richard Sandor<br />Voluntary Cap-&-Trade Market<br />1 Credit=$1.20<br />(CCX, 2009)<br />2009<br />
Cap & Trade:Chicago Climate Exchange<br />350 Members<br />Ford Motor Company<br />DuPont<br />Michigan State University<br />Etc.<br />(CCX, 2009)<br />
Cap & Trade:The Global Trading Market<br />EU ETS Primary Market<br />2009 1.6 B Tonnes @ € 15.17 or $21.39<br />2012 4.2 B Tonnes @ € 20.21 or $28.49<br />"The idea of a global cap and trade system ... is pretty far-fetched” – Paul Kelly<br /> Morgan Stanley<br />(CNN, 2009)<br />