A cap-and-trade system gives a firm two ways to reduce pollution. The most straightforward approach is to restrict emissions in compliance with government standards. However, many companies cannot immediately afford the necessary changes. Firms exceeding their quotas may buy carbon credits to offset the excess. Some credits come from companies that did not use all their allotments. Alternative credits can come from a greenhouse gas carbon project, which reduces pollution in other ways. Companies wishing to support these initiatives must consider that all are not equally beneficial.
Some examples of carbon projects are green energy production and reforestation. The benefit of planting trees is that they sequester carbon dioxide from the atmosphere and store it for decades. These are popular projects. Practically everybody identifies emotionally or spiritually with trees. People hate to see forests stripped from the landscape. Jungles represent some of the last surviving wildernesses on Earth, and it is a shame to think of them being eliminated. Replacing lost forests seems like a desirable objective, and in fact it often is. However, trees alone cannot eliminate greenhouse gases. In many cases they will be cut in a few decades, at which time the benefit will be lost.
The main factor contributing to climate change is human dependence on petroleum products. Alternatives must be found in order to support a growing global population projected to reach 10 billion or higher by the end of the century. Sustainable energy requires investment and research. This includes wind, solar, tidal, geothermal and low-impact hydroelectric power, biomass and biogas.
Alternative energy projects may be less popular than reforestation. Wind power, for example, often receives criticism because communities do not want turbines located nearby. However, tree planting does not provide a permanent solution to the problem. The best long-term strategy to address atmospheric carbon involves a balanced approach. Industry can help conserve forests while also supporting clean energy development.
