City Starts Thinking About Counting Carbon
Alfredo Nicastro, vice president of MGM International, described a cap-and-trade system for carbon emissions at the March 26 meeting of the Ann Arbor environmental commission.
At last Thursday’s regular meeting of the Ann Arbor environmental commission, Alfredo Nicastro of MGM International gave a sales presentation for his company’s services – which served an educational opportunity about carbon credits, and the possibility of the future “compliance market” in the U.S. based on a cap-and-trade system. It was also an opportunity for environmental commissioners to start thinking about the impact of such a market system on the city of Ann Arbor.
In broad strokes, here’s how a cap-and-trade system for carbon emissions – greenhouse gases – might work. The U.S. would set an overall limit – a cap – on the amount of a gas that can be emitted. Companies and other organizations, including entities like the city of Ann Arbor, would be issued permits (allowances, or credits) to emit a certain amount of carbon. The sum of all the emissions allowed by the permits would not exceed the amount specified in the cap. All organizations would have to comply with the requirement that they hold emission allowances at least equal to the amount of carbon they emit. [Full Story]