Depending on the specific rules of the trading scheme, a trading company can generate emissions credits through some or all of the following emissions reductions options:iii
- On-site emissions reduction
- energy-efficiency improvement
- process-efficiency improvement
- alternative stationary combustion
- emissions sequestration
- Off-site emissions reductions and demand-side management
- transport emissions
- demand-side management (reducing the consumption of consumers)
- Off-set projects
- investment in emissions offset projects
- involvement in Clean Development Mechanisms (does not apply to Australian companies unless developed by a subsidiary in an Annex 1 country, e.g. New Zealand)
Undertaking these operational activities form part of the broader climate change risk management strategy within the business (see below), and are undertaken in conjunction with sustainability reporting activities to communicate their progress with the company’s shareholders and stakeholders.
References
iii. Lovins, L.H. Hargroves, K.J. Juniper, C. and Smith, M.H. Prospering in a Carbon-Constrained World: Profitable Opportunities for Greenhouse Gas Emissions Reduction, prepared for the Chicago Climate Exchange and European Climate Exchange; http://en.wikipedia.org/wiki/Carbon_credits
