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| Home » Carbon management »Cap and Share schemes
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Cap and Share schemes |
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Cap and Share schemes can be referred to as an approach to cease the effect of climate change. Cap and Share schemes are mainly based on the logic that every human being has a right to enjoy equal share of earth’s limited resources.
Cap and Share schemes were mainly originated to provide everyone with equal opportunity to enjoy limited resources of the earth. Cap and Share schemes are initiated to reduce global warming and prepare the earth to accept further greenhouse gas emissions. Cap and Share schemes intend to cap the global emissions of green house gases at the current level and slowly reduce it year by year at a rate which will be consistent enough to achieve the target temperature.
Cap and Share schemes enable equal distribution of emission credits among adult population of the world. The credits distributed by Cap and Share schemes are in form of certificates. The receiver of these certificates can sell them through banking system to mainly producers of oil, coal and gas. These producers need these certificates to cover up annual carbon dioxide emissions from every tonne of fossil fuel they use. Main advantage of Cap and Share schemes is that under these types of schemes each one receives at least partial compensation for the higher cost of fossil fuels. These fossil fuels are limiting in supply.
A diagram can explain Cap and Share schemes in a better way:
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