Carbon trading has been devised as a medium based on market principles through which levels of Carbon Dioxide could be limited in our environment. According to the system of Carbon Trading a market is established where any entity be it a company or a country can trade carbon or carbon like elements. The participants of this system also are given an upper hand in the choice of means and medium that they may like to employ for keeping Carbon levels under check. AT ICAP energy we are performing the carbon farming initiative to provide a fresh and clean environment to everyone.
In order to turn carbon trading system into a success due attention needs to paid over dependable monitoring and reporting of emissions, verification and a means of enforcement, to be able to bring anyone in breach of the said rules to justice. Information about what’s going in the market needs also to be shared on a real time basis. A regulatory body and such other economic tools must also be established to aid in the effective functioning of the carbon trading system. Only areas where carbon emission could be measured easily like mining and energy industries should be taken under the purview of carbon trading system. This is primarily because of the ease in monitoring these emissions. The scheme is initiated by Australian government in collaboration with ICAP energy to have a complete monitoring of the work.
Environmental markets try to come up with market based remedies, well thought out public policy to help manage the carbon trading in a mutually acceptable open market platform.
Australia happens to be among the first countries that have passed the legislation in their respective parliament and encouraged environment conservationists to a great extent by this move. Green carbon along with penalty on pollution, investment in renewable sources of energy and using available energy efficiently are some of the mechanisms through which the problem of Global Warming could be countered efficiently.
Carbon farming initiative has empowered farmers and forest based industries to trade the carbon offsets which are a tradable financial instrument aimed at keeping greenhouse gas emissions to a minimum. This incentive is useful only when the land owner save the carbon emissions from the limit allowed to them based on the area which they have acquired.