Climate change has been an environmental issue that affects many countries. In fact, this issue has become a global concern not just for the developed nations, but for nations all across the world. Due to this, many countries all over the world are trying to take collaborative measures in an attempt to control and make the issue more moderate. The best example for this collaborative measure is the Kyoto Protocol, a regulation that is backed by many countries (over 100 countries) and includes a variety of regulations and protocols whose main objective is the reduction of greenhouse gas emissions from every country.
Among the many initiatives that the Kyoto Protocol supports is carbon credits. A carbon credit is a form of regulatory tax with the need to pay carbon tax to get credit from the carbon credit system. Caron credits are measured per metric ton of what is supposed to be carbon dioxide emission or equivalent greenhouse gasses. Normally, an international body or the government is the one that establishes a system which sets the limit. Participants to this program are given credits that are based on the limit or cap system.
The main issue with this cap is that there is minimal agreement as well as integration between groups and the regulatory bodies that implement the system and the use of tax proceeds that creates the carbon credits. Even though companies are organized into groups, should they need to exceed a certain cap given to them, the group will need to buy unused credits from other groups for a certain value as set by the market. Due to the implementation of this environmental law, carbon emissions have now become a commodity that can be traded and sold between participants. However, even though this is the case, the total credits being traded by different groups should never exceed the total cap.
The overwhelming concern of providing a usable and sustainable future for the future generations is at its peak. This is the very reason why many are now aiming to use and utilize renewable energy means and possibilities. Although there are still certain uncertainties, especially on costs, the carbon credit system is now the best policy that can be implemented. There are worries though as to who will benefit from this and who will suffer. Nevertheless, the main focus is the preservation of the environment for future generations.
Most countries are in agreement that this environmental law has many health benefits and is an effective way in attaining the goal into moving in to greener future. A greener business environment is aimed through the implementation of this environmental law and carbon credits alberta is at the forefront in all of Canada.