Kyoto Protocol: Firms with high energy use may need to set objectives for their emissions of greenhouse gases in order to achieve targets set by governments under the Kyoto Protocol. This may include: - reducing emissions to reduce liability for energy taxes - entering a carbon emissions trading scheme. The Kyoto Protocol was negotiated by 160 nations in 1997. It is an attempt to limit national emissions of greenhouse gases in order to slow down or halt an associated change of climate. The agreement sets emission targets for the individual nations. Australia, for instance, has agreed to limit its annual emission by the year 2012 to no more than 108% of its emission in 1990. For the world as a whole, the aim of the Protocol is to reduce the global emission of carbon dioxide to 5% below the 1990 value by the year 2012. The Protocol was negotiated based on an economic mechanism of carbon trading evolving; i.e. nations issuing permits for carbon emission, set to match the targets set by the Kyoto Protocol or its follow-on agreements. The permits, tradeable, both nationally and internationally, are intended to operate such that market forces ultimately replace government direction in the process of encouraging more efficient use of fossil fuel. Individual companies will be able to decide whether to spend money on new carbon efficient technology or on the acquisition of carbon credits from those industries or countries which have a surplus. In the UK for example, there is a carbon emissions trading scheme, which was set up in 2002. Details are provided here only to provide a clear picture of how such a scheme works. ^_^ Before i wonder what Kyoto Protocol is.... Now it is my lesson in ACCA..... So wonderful.... What i hate in subject economics and management most, now it turn i study strategic management and most in economic.... Loz..... hate ei, face ning.... :)
Posted on: Fri, 27 Jun 2014 06:06:42 +0000
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