How Emissions Limits Will Affect Businesses: Turab Musayev Weighs In
LONDON, UK / ACCESSWIRE / June 2, 2021 / The EU, Russia, and China are all working on their own versions of an emissions trading system (ETS), designed to limit emissions every year. Knowing how global strategies are coming together can help a business stay prepared for what's to come.
Turab Musayev has spent the last 18 years in the commodities industry and is known for his keen insight into how emission regulations affect larger industries.
Common Goals
It's clear that all the major players of the world are doing what they can to cut emissions as much as possible. The much bigger question is whether this can be accomplished in a cost-effective way.
With an ETS, the goal is to give companies more freedom to design a framework that works for them. According to Turab Musayev, this might mean buying from another company, so as to reduce overall production.
So let's say that Company A has a specific emission unit allowance for the year. The company leader decides to invest in all-electric vehicles though, slicing their emissions production by more than half. Instead of coming in far under their allotted emissions allowance though, the company owner decides to sell the excess to Company B.
Merging the Systems
If an ETS is an option, the terms and conditions of each transaction will vary depending on which country the companies are located in. Turab Musayev believes that in the future though, countries will move closer to standardized contracts.
We've seen the most progress made in these systems in the EU, as the first iteration was put in place more than 15 years ago in 2005. Since then, companies in the EU have been pressured every year to cut back on how many emissions they produce, as everyone works to get their quotas down.
COVID's Effects on Emissions
COVID seems to have sped up the timeline for more advanced environmental standards. A successful green recovery would solve a lot of problems on a global level.
Not only could environmentally-friendly regulations create more jobs, but it would also reverse some of the worst effects of climate change. Company owners can see how carbon reduction is taking center stage both in international and intranational policy.
Turab Musayev Looks Ahead
Emissions standards are being determined by the markets to some extent, even if the governments are taking action to reduce footprints. Above all, they want companies to be transparent in what they're doing, as this can motivate businesses to compete with one another in a way that benefits us all.
Many ETS programs, particularly China, are still in their infancy, but it pays to look to the horizon. Turab Musayev advises leaders to keep an eye on the horizon while working on or perfecting their own carbon reduction plan.
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SOURCE: Turab Musayev