September 16, 2009

Why We Should All Be Concerned About UK GHG Emissions

by Daniel Stouffer

Carbon itself will be priced for the first time next year when the Carbon Reduction Commitment puts particular emphasis on UK GHG emissions. Environmentalists and scientists have been telling us about excess energy and the damage that is being caused to the environment. The burning of fossil fuels and the emission of greenhouse gases will now have economic considerations as well.

The British government has decided to take action in advance of any international initiatives, enacting legislation to force the largest polluters to cut back on their emissions. Up to 5,000 of the largest consumers of electricity will, from 2010, have to account for their use and be forced to buy allocations from the government accordingly. As they use energy and release gases, they will give back these allowances.

During the 1980s, the US government introduced the "cap and trade" principle as part of the "acid rain" initiative. This is now being reintroduced by the British government as part of a lofty goal to curtail UK GHG emissions significantly by the year 2050. As such, an overall cap will be placed on the total amount of emissions permissible and users will have to trade between themselves to reduce their individual carbon footprints at the same time.

UK GHG emissions only represent part of the problem worldwide, of course but it looks like individual country initiatives will be the way forward as the overall problem is addressed. Industrialized nations lead the way, although a new initiative is expected from the Copenhagen protocol in 2012.

The Carbon Reduction Commitment is intended to address the overall problem of carbon pollution in a significant manner. UK GHG emissions can come from energy production, distribution, usage or from consumer actions or even recycling.

US legislators are looking with keen interest at London initiatives to tackle UK ghg emissions, as similar plans are afoot within Congress. It remains to be seen whether the upper house in Washington has the stomach to pass what is being seen as far-reaching legislation, as swiftly as the British.

Those who fail to reduce their carbon emissions once the scheme gets underway will face potentially serious repercussions. In addition to the fact that they will need to purchase additional allowances according to their production over quota, they will feel adverse publicity from exposure according to a league table to be published by the government. It is likely that those who fail to reduce emissions will also not realize economies and efficiencies that big competitors will surely see.

Industry and commerce across the United States is watching the progress of the Carbon Reduction Commitment as it plans to tackle the problem of UK ghg emissions. The progress of their British counterparts will be interesting to behold as it may well pertain to future curtailment plans within the US.

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