Emission trading or carbon emissions trading is a method for businesses looking to reach specific emissions goals. An emissions trading program provides businesses with options for meeting mandatory or voluntary emissions caps.

An emissions trading program sets a maximum limit, or cap, on emissions for participating sources. Each source, or business, emits in the form of allocated emissions allowances (which are determined by the cap). To comply, sources must provide emissions allowances equal to the amount of emissions they produce. Each business may go about this in a variety of ways, either through the use of pollution controls, implementation of new measures, or the buying and selling of emissions allowances. To find out how your business fits into the emission trade equation, consider the following:

1. Identify emission standards in your industry as well as geographic location.

2. Calculate the amount of emissions produced by your business.

3. Contact an emission trading broker to purchase, trade, and sell emission credits.

Action Steps
The best contacts and resources to help you get it done

Determine the amount of emissions produced by your business before engaging in the emissions trade

Possessing an up-to-date and accurate understanding of the pollutants your business produces is a must before entering into the emissions trading system. While many websites provide resources for individuals to calculate their environmental 'footprints,' such sites lack the appropriate tools for businesses to do the same.

I recommend: Discover the environmental impact of your business by using the emissions calculator at GreenLife. And remember, every facet of your business must be taken into account to ensure an accurate emission calculation. ClimateCare may be useful if you already know the amount of emissions produced by your business.

Hire an emissions broker or join an emissions brokerage firm to manage your carbon trading

Contacting a broker is critical for your business to properly buy and sell emission credits. Look at both international and national firms to determine which is best for your business.

I recommend: Retain a broker before participating in an emission trading scheme by obtaining contact information or registering on the firm's website. CantorCO2e and TFS Green have the environmental aspects of your business covered.

Maximize benefits provided to your business through the use of an emissions trading firm

Beyond the purchase and sale of emissions credits, brokerage firms have a lot to offer your business. With insider knowledge of the carbon trading market, these organizations understand that cost and time are key to a successful emission reduction strategy.

I recommend: Take advantage of seminars, informative articles, and info graphics provided through your membership. Easily accessible online, your business is never more than a click away from buying and selling emissions allowances or tracking the carbon market. Register at the Environmental Markets Association or Evolution Markets to customize an emission strategy to meet your business needs, as well as access additional resources to keep you up to date on the emissions trading market.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Emission trade brokers are able to help businesses in a variety of ways so be up front about your environmental goals and financial needs. Special projects, partnerships, and investments will be specifically tailored to your business needs.