EMISSION TRADE

The international community began the long process towards building effective international and domestic measures to tackle GHG emissions (carbon dioxide, methane, nitrous oxide, hydroflurocarbons, perfluorocarbons, sulphur hexafluoride) in response to the increasing assertions that global warming is happening due to man-made emissions and the uncertainty over its likely consequences.

  • HOW DID IT HAPPEN?

    It all started in Rio de Janeiro in 1992, when 160 countries agreed on the UN Framework Convention on Climate Change (UNFCCC). The UNFCCC is, as its title suggests, simply a framework; the necessary detail was left to be settled by the Conference of Parties (CoP) to the UNFCCC.

    Reducing GHG, required substantial costs, perhaps running into many trillions of dollars globally if countries have to solely rely on their own domestic measures. It is possible for a country to reduce emissions using a command-and-control approach, such as regulation, direct and indirect taxes.
    The cost of that approach differs between countries because the Marginal Abatement Cost Curve (MAC) — the cost of eliminating an additional unit of pollution — differs by country. It might cost China $2 to eliminate a ton of CO2, but it would probably cost Norway or the U.S. much more. International emissions-trading markets were created precisely to exploit differing MACs.
    the Kyoto Protocol defined international mechanisms which would allow developed countries set ambition targets while offering support to under develop countries. One of these mechanisms is to allow parties to find the most economical ways to achieve their targets by trading responsabilities.

    To understand carbon trading, it is important to understand the products that are being traded. The primary product in carbon markets is the trading of GHG emission permits. Under a cap-and-trade system, permits are issued to various entities for the right to emit GHG emissions that meet emission reduction requirement caps.[39]

  • European Union

    European Union took lead for CO2 and GHG reduction in the World. Set one of the strongest regulations, and required EU members to oblige. Examples can be seen in shutting doen of coal power plants. Another example is the well functioning Emissions Trading System (EU ETS). EU ETS covers around 40% of the EU's greenhouse gas emissions, operates in all EU countries plus Iceland, Liechtenstein and Norway (EEA-EFTA states), and limits emissions from around 10,000 installations in the power sector and manufacturing industry, as well as airlines operating between these countries. . Participation in the EU ETS is mandatory for companies in the following industries and gases, focusing on emissions that can be measured, reported and verified with a high level of accuracy:
    1. Carbondioxide (CO2) from energy-intensive industries, such as;
    + electricity and heat generation, + oil refineries, + steel works, production of iron, aluminium, metals, + cement, lime, glass, ceramics, + pulp, paper, cardboard, acids and bulk organic chemicals, + Aviation within the European Economic Area; (until the end of 2023 the EU ETS will apply only to flights between airports located in the European Economic Area.)

    2. Nitrous oxide (N2O) from production of nitric, adipic and glyoxylic acids and glyoxal; 3. Perfluorocarbons (PFCs) from production of aluminium.

    EU ETS Handbook

  • ARE YOU READY FOR EU GREEN DEAL

    The European Green Deal is action plan for a clean and circular economy, as well as restoring biodiversity and cutting pollutions. he EU aims to be climate neutral in 2050. It explains how to ensure a just and inclusive transition. The plan outlines investments needed and financing tools available. To turn this political commitment into a legal obligation, a European Climate Law is proposed.

    Reaching this target will require action by all sectors of EU economy, including working with international partners to improve global environmental standards.

  • Gold Standard Carbon Certificates

    As Finnturker, we are delighted to reduce your companies Carbon Foot Print. We offer you emission reductions certificates under the Voluntary Carbon Market. It is published and administered by the Gold Standard Foundation, a non-profit foundation headquartered in Geneva, Switzerland. Emission Reduction Certificates, also known as Carbon Credits, from this Foundation designed with an intent to ensure that carbon credits are real and verifiable and that projects make measurable contributions to sustainable development.

    The Carbon Credits generated by projects which can then be bought and traded by countries that have a binding legal commitment according to the Kyoto Protocol, businesses or other organizations for carbon offsetting purposes.