Cost of Carbon helps the bottom line

Posted by on March 2, 2009 in Carbon | Comments Off on Cost of Carbon helps the bottom line

A recent summary in Environmental Leader indicated that by 2012 the cost of carbon, per the proposed budget and cap-and-trade scheme would be $13.70, resulting in a 6 to 7% increase in fuel and energy costs.  This is based upon a US-only Cap and not a US-Canada-Mexico Carbon Cap which is an alternative possibility.  It also doesn’t include efforts that may be in place for renewable/lower carbon producing energy and fuel alternatives.

Regardless of the details, it certainly looks imminent that some form of the long proposed cap-and-trade carbon scheme will be in effect soon.  Though the potential costs may seem to be something that the current economy cannot support, I would tend to disagree.

A known carbon cap with a well defined financial impact on organizations will help to spur additional innovation in how energy is sourced and managed.  It will promote more carbon management and accounting and a better, in depth understanding of many of the inefficiencies that exist today in businesses and organizations.  By knowing and correcting these areas of waste, a net savings to business will be realized.  In addition, there is an opportunity for leaders that implement carbon management solutions into  their processes to also participate in carbon trading,  generating carbon credits of a known value which can be sold on the open market and added directly to the bottom line.