In my previous blogs I talked about climate change legislation trends in California and Australia. In upcoming weeks I am going to highlight carbon trading and sustainability reporting requirements in the European Union (EU), focusing initially on the overall EU Emissions Trading System and then on each country’s specific legislation.
The EU has been exploring measures to combat climate change for more than a decade and has established a variety of initiatives that have impacted manufacturers and processors. The EU Emissions Trading System (ETS), launched in 2005, is a significant mechanism implemented to control and reduce the emissions of Greenhouse Gases (GHG). As with all Cap and Trade systems, the idea is to engage the market place, with its financial incentives and penalties, to reduce climate-changing carbon emissions rather than through top-down orders from regulators. The ETS established a market for large industrial facilities to trade the right to emit CO2, with the total number of allowances being allocated gradually reduced since inception.
You can obtain full details on how the program works and how you can use Oracle Environmental Accounting and Reporting to meet these requirements here.
By Elena Avesani, Principal Product Strategy Manager, Oracle