Climate change has taken centre-stage as the pre-eminent global environmental challenge of the 21st century. Reducing the greenhouse gas emissions that cause climate change has, as a result, become a principal objective of business. Delivering these cuts efficiently has led to over 40 governments at regional, national and international level to develop carbon trading regimes.
The essential implication of carbon trading is that an organisation?s climate change strategies are increasingly important in limiting exposure to financial and legal risks. The broader implication of carbon-trading is that increasingly it pays companies to invest in developing a climate change and emissions trading strategy that ensures these risks are limited, and that any potential opportunities that arise from emissions trading are fully exploited.