Cap and Trade

During the 2008 election, the candidates and news media are throwing around a lot of terms, especially when talking about the environment. One you might have heard of is Cap & Trade. What is it? And why should you know about it?

The first thing to know is that its goal is to reduce CO2 emissions and other greenhouse gases.

For example, a company that pumps greenhouse gases into the air must have a permit for every ton of CO2 it releases. These permits set a limit, or a cap on the amount of greenhouse gas pollution allowed.

Now take another company who reduces their emissions faster than the first one. These more efficient companies can sell their extra permits to other companies. This is the trade part.

The system guarantees a set level of reductions, while rewarding the most efficient companies. Frito-Lay, IBM and others who have already joined the EPA’s Climate Leaders program are in a position to benefit from this program since they have already begun reducing their greenhouse emissions.

For more information on ways how to reduce carbon emissions go to epa.gov.


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