In an international effort to fight the global climate change, several countries joined the carbon emissions trading market. Senior officials from the countries like U.S., Canada, Norway, and New Zealand decided to join the carbon trading market.
The act by which the countries are bound is known as International Carbon Action Partnership or popularly known as ICAP. The goal is to develop the low carbon economies. According to the latest plan, the companies will provide an annual ceiling on carbon dioxide emissions. Essentially, the companies will issue pollution permits which can be traded internationally between the members of the carbon trading market.
The cap and trade system used internationally will help the countries worldwide. ICAP has been formed as a non profit and non governmental association. The creation of this association is significant in controlling the carbon emissions and carbon trade. As of now, the US states of New York, California, as well as New Jersey have joined the ICAP.
However, the U.S. government has opposed the mandatory limits set on the greenhouse gases. Gee, I wonder why. The U.S. thinks that such limits will actually result in an economic setback. The plan is to develop more sophisticated trading systems in the near future which will make the ICAP more efficient.
Image Credit: Terrapinn
