Emission Trading In Nz
...introduced to try to control and monitor the green house gases that countries are emitting into the worlds atmosphere. This paper will look into some pros and cons for the emissions trading schemes looking into the economical, environmental and policy perspective and why governments introduce or do not introduce them into their own countries.
• Economical
The major problem to get companies and governments to introduce these schemes into the business or country is whether the costs will outweigh the benefit. Making incentives for this to happen is the key antidote as stated “sources have an interest in opting in if they can cheaply reduce emissions and derive economics benefits from selling their excess allowances.” (Boemare & Quirion 2002).
The Kyoto Protocol has introduced the Clean Development Mechanism as an incentive to get countries to sign into the treaty. This mechanism is designed to help developing countries become more aware of the issue and to start to do something about it. This works by the more developed countries receiving economic benefits if the help out the lesser countries. Joint Implantation is also another incentive that has arisen; this allows Annex 1 countries (public or private entities from countries with emission reduction targets) to have plants in other Annex 1 countries. This usually happens when the country that they are going to set up in has cheaper reductions. They then apply the credit towards their own emissions, which in ends up giving them a profit or economic benefit.
With such a massive market to try to break into many problems have surfaced “ ‘High Cost’ associated with the implementation of energy efficiency and GHG reduction activities and ‘lack of financial resources’ for these activities are seen as the main barriers in both Pakistani and UK companies.” (Jeswani et al., 2008). With international trade being such a...
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