Global Warming.... and making money out of it

This is from my earlier blog which I deleted...posting it again

Originally posted on March 26, 2007

The era of Procastination, of half measures, of soothing and baffling expedients, of delays, is coming to its close. In this place we are entering a Period of consequences.


These words were said by Sir Winston Churchill way back in 1936. He must have said them about something else but they are perfectly true in today's world where Global warming is the biggest threat for the existence of mankind (of course there was no global warming in 1936). I came across these words in the Oscar winning documentary " An Inconvenient Truth" by former US Vice President Al Gore.

'An Inconvenient Truth ' highlights the consequences of Global Warming due to uncontrolled CO2 emission worldwide, and how little is being done to stop it. According to the scientific datas and predictions, in another fifty years, it will be very very difficult to live on earth as all the resources will dry up and the climate will go crazy. If this continues, polar ice will melt, ocean levels will rise by 20 feet, and there will be draughts, cyclones, temperature rise and ultimate human misery.

But if everyone knows it, and it can be stopped, why isn't it being stopped? If we know the cause so well, why don't we set it right? Here comes the big question : Economy vs Environment. Nothing comes for free. To reduce the carbon emission, the developed countries will have to spend billions of dollars which, they say, will ruin their economy. But as Al Gore says in his documentary, "What will you do with all the gold if you don't have the earth?". Developed countries like USA and Australia which contribute to more than one-third of greenhouse gases have refused to sign the Kyoto protocol citng the same reason. For them, the simple answer to the 'Environment vs Economy' question is 'Economy'. Almost all other countries on earth have signed it, and they are trying hard to reduce the emission of greenhouse gases.

But everything is not easy for these companies. People all over the world are protesting against them, and they had to do something for it. Then came the concept of Carbon Trading. This Carbon Trading allows you to actually make money out of pollution. The funda is simple. The governments of these countries set a maximum limit for pollution. If the company pollutes the environment more than this limit, they will have to purchase 'Carbon Credits' as a fine equivalent to the excess pollution they have created. If a company's pollution level is below the maximum limit, it can sell 'Carbon Credits' equivalent to the difference and the company which pumps excess pollution can buy them.

The promoters of this 'Carbon Trading' justifies it saying that if a company is polluting in excess of the maximum limit, it is being compensated by the company selling the carbon credits as it is generating less pollution. When average emission of the two companies is taken, it will be equal to the maximum limit. Thus emission is controlled. Also, companies which can reduce their emission levels will be encouraged to do more, as they can sell the 'carbon credits'. So Simple. Isn't it?

But it is not as simple as it looks. There are many flaws in this cabon trading. Governments have been accused of selling 'carbon credits' to companies at 'dirt-cheap' price to protect their interests. The big companies sometimes threaten small companies to sell their carbon credits cheaply, off the record. Also, there are bound to be environmental problems near more-polluting entities as now they won't care about reducing it, they will just purchase carbon credits, and whoa ! their pollution comes under control, officially. The rich companies like oil companies will make no efforts to reduce the pollution emitted by them, but will simply purchase carbon credits, as they have all the money in the world. But all this is like beating someone and then giving him some dollars for his treatment. No doubt this will reduce pollutin to some extent, but it will be like one part of the world free of pollution and selling carbon credits, and other part of the world heavily polluted, but buying carbon credits. Take the average, and pollution is under control.

The idea was actually good, but the implemantation flawed. Instead of trading, companies must be made to pay heavy fines if they do not reduce their emission levels, and not just fine, they must be stopped if they do not do it. Some extra tax can be levied on companies polluting the environment, and tax exemption should be given to those who have their emission under control. Also, other causes must be addressed, like replacement of Petrol and Diesel by Ethanol and Biodiesel respectively, and intelligent usage of electrical appliances. I hope one day these people who put 'Economy' ahead of 'Environment' will wake up and Earth will be a better place to live in, otherwise be prepared for the worst.

"Depending on what is going on in this world, the map of the world will have to be redrawn" - An Inconvenient Truth