Thirty-seven industrial countries have committed themselves to reducing greenhouse gases and actively promote the use of carbon offset credits. They have agreed to The Kyoto Protocol which caps the emissions of Green House Gases (GHG) at predetermined levels. If they produce more GHGs they need to acquire carbon offset credits from other third parties. All signs point to the USA eventually mandating stricter GHG compliance standards and possibly enacting a Cap-and-Trade system.
According to a recent Wall Street Journal article, “the Obama administration says it will curb greenhouse-gas emissions using the Clean Air Act if Congress doesn’t act, and the Environmental Protection Agency has been pushing ahead with rule making.” There are over 1,000 leading foreign & domestic industrial companies buying Carbon Offset Credits.
Watch this 6min 12sec video to learn more about what Cap-and-Trade means.