Cap And Trade Case Study

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Environmental and Economic Aspects of CAP and Trade Laiba Inam Ryerson University Economy and Environment ECN511-70E Dr. Amanda Ackerman Environmental and Economic Aspects of CAP and Trade “Up to 16,000 Canadians die each year because of high pollution levels and poor air quality (City Of Windsor 2016).” Air pollution is the world's largest health risk. Pollution and climate change is a major global issue. Canada is “the ninth largest emitter of greenhouse gas” that needs to enact a climate policy [1] (Mildenberger et al. 2016). Greenhouse gasses are emitted by Human activities such as energy industries, transportation, residential and commercial activities, manufacturing, construction, industrial processes, and agriculture (Ayşegül &…show more content…
In the long run this will assist in saving energy costs, improving productivity and global competitiveness, protecting jobs and creating more jobs. Ontario sets caps on the total emissions for 2017 to 2020 (cap in 2017 is set at 143,332,000). The objective of Ontario’s greenhouse gas reduction is to be 15% below 1990 levels by 2020, 37% below 1990 levels by 2030 and 80% below 1990 levels by 2050. Other Jurisdictions CAP and Trade is a cost-effective method for reducing emissions. The world’s largest implementation of Greenhouse gas trading system is the European Union Emissions Trading System (EU ETS) and they have been environmentally ineffective. The result of price crash non-stability in California and Quebec are also environmentally ineffective. In 2016, the emphasis was on EU ETS’s fourth phase (2021-2030) which was what the European Commission, presented changes for. The purpose of the presented changes is to bring the cap into line with the EU's 2030 objective, reducing Greenhouse Gas emissions to at least 40% nationally by 2030. The EU provides a better goal of free allocation rules and further supports low-carbon innovation and energy sector transformation. To meet the legal requirements and to compensate for excess pollution EU ETS should reduce GHG emissions, and buy emission allowances in the carbon market. They could also reduce GHG emissions
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