Green tickets
For people who want to do something for climate change, www.climatecare.org and www.carbonneutral.com provide green ticket of airplane. This is the same as the normal tickets, but add some prices on that are used for green project around the world. “For example, offsetting a flight from London to Paris would cost you 37p.” (Goff, 2006). “[British petroleum] offers more expensive offset petrol in Australia” (The Economists, 2006), while they provide normal price petrol. Environmentally friendly consumers do not mind that a company put the cost of offsetting on the commodity prices.
Forestation
An acre of planted forests takes 400 to 450 tonnes of carbon dioxide over the 100 years. (Knight-Ridder, 2004). As the forest gets bigger naturally, people are able to sell more carbon credits. That means slower increase of income at the beginning and rapid increase later. However, calculating the exact amount is difficult. Accidental, forest fire and infestations could release the carbon to air. People need enough amounts of funds to maintain primary forests and sustain the environment.
Fund
Extreme weathers, such as huge hurricanes, heavy snows, and recorded heat, lead the funding easier for environment conservation. HSBC (The Hongkong and Shanghai Banking Corporation Limited) is focusing on supporting a business, which is environmentally sustainable. Moreover, Swiss Re and Munich Re, an insurance company starts investing more for the climate change. Energy efficient technologies save usage of oils, increase profits and it develops the corporation, but it also contributes to decline of climate change. Insurance companies have to prepare for compensation, which is caused by natural disasters and the climate change.
Financial companies start looking at environmentally sustainability of businesses, to make sure that those businesses would not get bankrupted with disasters instigated by the climate change.
Indulgences sins
People say that offsetting of carbon emission is similar to past indulgences sins, which was printed by the Catholic Church, people purchase for forgiveness. (The Economist, 2006). In India, where people do not have emission cap by Kyoto protocol, ‘carbon credits’ is used to call subsidies for plantation owners. Their plantations also have trees that capture green house gases, but those are often planted after they deforested native tree. When people purchased this kind of carbon credit they can feel free from pollution problems, and they could support local farmers in developing countries, but it does not work for the climate change, primary reason of the credit trading. (The times of India, 2005).
On the other hand, the permit trading is able to effective for the global warming. The negative reputation is also because people cannot view air pollutions and effect of permit trading. The emission must be cut, but people wonder whether the trading works or not. That also means lack of trust on the permit trading by people. In any industries, makers cannot sell their products without trust by customers. It is the same as on permit trading. The market needs work to improve their images, like car industries advertise themselves. Green tickets also require trust by consumers. In the case of car industries, people can see tangible cars, but it is not easy to show consumers result of the permits trading for operators. Moreover, people are not going to buy a car if they do not know the quality of it. Operators of credits traders also need to market themselves to prove their activity qualities to consumers. (Mackintosh, 2006)
Kyoto protocol
This agreement is to reduce overall emission of green house gases to stop global warming, however, it exclude newly industrializes countries such as Brazil, Russia, India, and China. Those are becoming major causes of air pollutions, and their economic growth suffers developed countries. It discourage companies in developed countries to invest for improve their efficiencies. International society does not have any further proposal that encourage developing countries not to increase their pollutions. If people had one it would cost developing countries a lot to prepare the same quality of facilities that advanced countries are using. Also, it offers more revenues for companies, which have advanced technologies for production.
Conclusion
The carbon emission trading has variety types. The most formal one is European climate exchange, operated by European Commissions. There is not easy to perticipate for individual people. Chicago climate exchange is organized by volunteers and have more flexibility. There is an enough space for companies to participate in the trading and gain profits. In addition, any people can arrange their own carbon credit as one of green marketing. Green tickets are one of them. Managers cooperate with airplane companies to sell a ticket for higher price, which used for green activities and offset their emission. In the case, people need special marketing strategy for trust of the credits. When people can create a ‘green’ image of carbon credit trading, the business will be economically successful.
For people who want to do something for climate change, www.climatecare.org and www.carbonneutral.com provide green ticket of airplane. This is the same as the normal tickets, but add some prices on that are used for green project around the world. “For example, offsetting a flight from London to Paris would cost you 37p.” (Goff, 2006). “[British petroleum] offers more expensive offset petrol in Australia” (The Economists, 2006), while they provide normal price petrol. Environmentally friendly consumers do not mind that a company put the cost of offsetting on the commodity prices.
Forestation
An acre of planted forests takes 400 to 450 tonnes of carbon dioxide over the 100 years. (Knight-Ridder, 2004). As the forest gets bigger naturally, people are able to sell more carbon credits. That means slower increase of income at the beginning and rapid increase later. However, calculating the exact amount is difficult. Accidental, forest fire and infestations could release the carbon to air. People need enough amounts of funds to maintain primary forests and sustain the environment.
Fund
Extreme weathers, such as huge hurricanes, heavy snows, and recorded heat, lead the funding easier for environment conservation. HSBC (The Hongkong and Shanghai Banking Corporation Limited) is focusing on supporting a business, which is environmentally sustainable. Moreover, Swiss Re and Munich Re, an insurance company starts investing more for the climate change. Energy efficient technologies save usage of oils, increase profits and it develops the corporation, but it also contributes to decline of climate change. Insurance companies have to prepare for compensation, which is caused by natural disasters and the climate change.
Financial companies start looking at environmentally sustainability of businesses, to make sure that those businesses would not get bankrupted with disasters instigated by the climate change.
Indulgences sins
People say that offsetting of carbon emission is similar to past indulgences sins, which was printed by the Catholic Church, people purchase for forgiveness. (The Economist, 2006). In India, where people do not have emission cap by Kyoto protocol, ‘carbon credits’ is used to call subsidies for plantation owners. Their plantations also have trees that capture green house gases, but those are often planted after they deforested native tree. When people purchased this kind of carbon credit they can feel free from pollution problems, and they could support local farmers in developing countries, but it does not work for the climate change, primary reason of the credit trading. (The times of India, 2005).
On the other hand, the permit trading is able to effective for the global warming. The negative reputation is also because people cannot view air pollutions and effect of permit trading. The emission must be cut, but people wonder whether the trading works or not. That also means lack of trust on the permit trading by people. In any industries, makers cannot sell their products without trust by customers. It is the same as on permit trading. The market needs work to improve their images, like car industries advertise themselves. Green tickets also require trust by consumers. In the case of car industries, people can see tangible cars, but it is not easy to show consumers result of the permits trading for operators. Moreover, people are not going to buy a car if they do not know the quality of it. Operators of credits traders also need to market themselves to prove their activity qualities to consumers. (Mackintosh, 2006)
Kyoto protocol
This agreement is to reduce overall emission of green house gases to stop global warming, however, it exclude newly industrializes countries such as Brazil, Russia, India, and China. Those are becoming major causes of air pollutions, and their economic growth suffers developed countries. It discourage companies in developed countries to invest for improve their efficiencies. International society does not have any further proposal that encourage developing countries not to increase their pollutions. If people had one it would cost developing countries a lot to prepare the same quality of facilities that advanced countries are using. Also, it offers more revenues for companies, which have advanced technologies for production.
Conclusion
The carbon emission trading has variety types. The most formal one is European climate exchange, operated by European Commissions. There is not easy to perticipate for individual people. Chicago climate exchange is organized by volunteers and have more flexibility. There is an enough space for companies to participate in the trading and gain profits. In addition, any people can arrange their own carbon credit as one of green marketing. Green tickets are one of them. Managers cooperate with airplane companies to sell a ticket for higher price, which used for green activities and offset their emission. In the case, people need special marketing strategy for trust of the credits. When people can create a ‘green’ image of carbon credit trading, the business will be economically successful.