Carbon Trade is an exchange of credits between nations designed to reduce emissions of Carbon dioxide. The carbon trade allows countries that have higher carbon emissions to purchase the right to release more carbon dioxide into the atmosphere from countries that have lower carbon emissions. The carbon trade originated with the 1997 KYOTO PROTOCOL and is intended to reduce overall carbon dioxide emissions to 5% below 1990 levels between 2008 and 2012.
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Under Carbon trading, a country having more emissions of carbon is able to purchase the right to emit more and the country having less emission trades the right to emit carbon to other countries. More carbon emitting countries, by this way try to keep the limit of carbon emission specified to them.
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The world’s biggest carbon trading system is the European Union Emissions Trading System (EU ETS). It is beset with problems and corruption and yet countries such as Brazil and China continue to pursue carbon trading as a way to tackle rising emissions.
Carbon trading is increasingly criticised, not least because carbon dioxide emissions in industrialised countries are not declining at the necessary rate to avert catastrophic climate change.
Montreal Carbon Pledge
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Montreal Carbon Pledge is a commitment by investors to annually measure and publicly disclose their portfolio’s Carbon Footprint — that is, the impact on the greenhouse gases that contribute to global warming.
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An investor who signs the Montreal Carbon Pledge is making a formal commitment to measure, disclose, and reduce its carbon footprint. As stated on the Montreal Carbon Pledge website, the formal pledge is as follows:
“As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that there are long-term investment risks associated with greenhouse gas emissions, climate change and carbon regulation.
“In order to better understand, quantify and manage the carbon and climate change related impacts, risks, and opportunities in our investments, it is integral to measure our carbon footprint. Therefore, we commit, as a first step, to measure and disclose the carbon footprint of our investments annually with the aim of using this information to develop an engagement strategy and/or identify and set carbon footprint reduction targets.”
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Companies have to stop trading Carbon for better climate and Healthy future.
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