A Primer on Environmental Cap and Trade
Dec 14th, 2009 by staff entry
Understand What Everyone is Talking About at the Copenhagen Climate Summit.
One of the solutions being proposed to solve the global warming crisis is to implement a carbon cap and trade system.
The basic idea is to grant every company a set allotment of carbon credits. This is the amount of carbon emissions the company is allowed to produce. If a company doesn’t use its quota (ie. it operates more efficiently from an environmental perspective) it can sell credits to companies that need more carbon credits. The theory is that with such an economic incentive companies would search out greener solutions.
Here is a short video explaining the system in greater detail and pointing out some of the problems this solution presents. It was created by Annie Leonard who is also the creator of the popular The Story of Stuff video.
You can also download the text of the Story of Cap and Trade video as well as answers to Frequently Asked Questions About Cap and Trade.