Managing Carbon

Abstract

In recent years emissions trading schemes that aim to reduce greenhouse gases, has been the principal focus of government, industry and nongovernmental organizations. A great deal of emphasis has been placed on what the schemes should look like but less on what companies must do in order to participate in a trading scheme. Since the EU Directive on emissions trading was adopted, greater emphasis has been placed on the methods and tools that will be needed in order for companies to succeed in a carbon constrained economy. Thus far, industry’s main focus has been on limiting any potential negative impact of an emissions trading scheme (i.e. by either challenging the allocation process, attempting to limit the industry effect by a potential scheme or by attempting to influence the stringency of a cap). Developing strategies for coping with limitation on emissions has been a secondary concern.