In light of pending action by US lawmakers on greenhouse gas legislation, twenty questions a raised for business owners to consider about cap and trade.
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Twenty Carbon Questions 8 May 2009
1. Twenty Carbon Questions Bruce M. Wallington Strategic Environmental Executive, LLC [email_address]
2. Do you know the six major gas components of CO 2 e? Question 1
3. Question 1 How many metric tons is your company’s carbon footprint? Question 2
4. What are the ratios between your company’s Scope 1, Scope 2 and Scope 3 CO 2 e emissions? Question 3
5. Has your CO 2 e inventory been verified by a independent and qualified third party professional? Question 4
6. Have you benchmarked your company against industry peers for absolute CO 2 e emissions? Scope 1 and Scope 2 Metric Tons (000) Question 5
7. Scope 1 & Scope 2 Metric Tons Per Million $ Sales Have you benchmarked your company against industry peers for CO 2 e intensity? Question 6 Widget Company Name
8. Did you know that the USA’s 2005 net CO 2 e inventory is about 6.4 billion metric tons? Question 7
9. Transportation 28% Did you know that transportation sources are greater than 1/4 of the USA’s 2005 net CO 2 e inventory? Question 8
10. Are you cost effectively reducing the CO 2 e footprint from your fleet operations? Question 9
11. electric power industry transportation other agriculture industry commercial residential 28% 1% 8% 19% 5% 33% 6% Did you know that electric power industry sources are 1/3 of the USA’s 2005 net CO 2 e inventory? Question 10
12. Do you have projects in place to increase your percentage of renewable energy sources? Question 11
13. Will you have to register your CO 2 e inventory into a national carbon database? Question 12 CO 2 e This Way Wrong Direction
14. Is your business prepared to participate in the carbon cap and trade program? & Question 13 Carbon Cap
15. Did you know that the initial CO 2 e allocation is likely to be some type of auction or lottery? Question 14
16. How many permits (carbon allocations) will you need to continue running your business? 1 metric ton CO 2 e 1 metric ton Question 15
17. Do you know the fossil fuel beta* for your company? * Business Education News Network, Tuck School of Business professor develops fossil fuel beta , 3 April 2009 Question 16 Change in Fossil Fuel Prices beta = + (positive) beta = 0 (neutral) beta = - (negative)
18. What changes will you make to your business planning since the carbon cap will decline over time? Question 17
19. What percentage does your gross margin change if the price of CO 2 e goes to $65 dollars per metric ton? Question 18
20. Do you have the staff expertise to successfully face the carbon challenge? Question 19