subject: Carbon Credit Policy Set To Tighten [print this page] In Europe, it is very noticeable that the tradable and trackable emissions have dramatically dropped way advanced from what a predicted. In the United States, the 'great recession' has actually left its side-effects to the environment in the form of reduced carbon emissions.
Many are actually stressing the impacts of the great fall to about 11% of carbon emissions in the European Union last year, which shall create the unusual results to the caps that were imposed by he Emissions Trading Scheme, which are actually higher than the current actual emissions. A lot are actually thinking whether carbon credit policy would be less strict, as the results are very much ahead of what was expected. There would be some who argue that carbon credit policy need not be tightened more during a period when there is economic uncertainty, but others stick to the contention that all of these initiatives are for the gains for environmental rehabilitation and preservation which has its own costs for everyone if left unmanaged.
If we can see a silver lining of any kind in the cloud that represents the "great recession" it is that it will have accelerated a reduction in greenhouse gas emissions worldwide. This is most observable in the European Union, where trackable emissions have actually dramatically dropped way lower than what was predicted.
On the other hand, those who argue that carbon credit policy needs to be made tighter as of now are actually worried of this leading to the policy being loosened due to economic growth. However, environmentalists and scientists argue that the only way forward is to tighten caps and that loosening of carbon credit policy should never be considered under any circumstances.
The rapid reduction of carbon emissions in the EU was predicted and expected, but it is certain to affect market validity. Moreover, permits allowing the production of emissions are now plenty which would stop the rate of companies pursuit of international offsets, which in turn would slow down the curtailment of carbon emissions in other parts of the world.
There is sure to be much debate about carbon credit policy in Europe and those who oppose the passage of stringent legislation in the US will certainly refer to the swollen market in the EU as they oppose the introduction of a mandatory carbon credit policy in the United States.
Business should therefore look at this as an opportunity to recast in a 'green' operations from the point it left recession. New growth should always be seen as sustainable and carbon credit policy should not be relaxed at all as there is a danger that old habits could reemerge and it could become far more difficult to get back on track, to achieve the necessary reductions in the years ahead.
Due to some indications from the climate commission in the EU, it appears that the erstwhile 20% reduction target set for the year 2020 may well be increased to 30% and this would help to soak up the excess amount of permits that are floating around, which if not absorbed could be used to "pollute" as time goes forward.
As the EU tightens its carbon credit policy, and should it increase its emissions reduction targets by up to 30%, it would be more in line with the most current declarations from within the US, which makes a GHG emissions reduction target by 28% within the same timeframe. It remains to be seen how this ambitious target will be realized domestically, however.
