Business Taking Bigger Steps to Combat Climate Change
The US Climate Action Partnership (USCAP) this week has dramatically increased its membership to include General Motors, Shell, Pepsi, and Johnson & Johnson among others. GM is the first automobile company to join the coalition. As the Environmental Defense points out this increase in membership gives the group considerable leverage. The USCAP partners are in industries that are crucial in the fight against global warming.
Congress will definitely need to sit up and take notice of the this powerful and growing lobby group. One of the the key policy directions USCAP is interested in is the cap and trade mechanism. Cap and trade provides a system to cap carbon emissions at specific levels for different industries. If a company cannot stick to the cap required for their industry they have the ability to trade emission credits with companies from different industries with excess room within their cap. Emissions trading or carbon exchange are all words for the same process in different countries. Much of the process for cap and trade has been developed in Europe and is working successfully.
In addition companies with low emissions can generate additional revenue by selling their excess carbon credits. USCAP realizes that this method of regulation encourages innovation and marketplace mechanisms for companies to develop lower emission technologies and processes. Cap and trade fits well with environmentalists as well, because of how it helps to transition the economy to a low carbon future.