Engineering solutions for energy conservation and environmental protection

Environmental Regulation

On January 2005, the European Union implemented a market-based trading system for greenhouse gases. This imposes a limit on the amount of CO2 certain industries are allowed to produce.

Companies producing less than their allowance - either through increased energy efficiency or investment in new technology to reduce carbon - may sell their unused allowances on the open market.

Those companies who exceed their limit will have to pay for extra allowances, or face a fine.

It is possible that the government will gradually reduce the emissions allowances, forcing businesses to become even more environmentally friendly.

Companies who invest early in energy efficient technology are likely to benefit most from the new environmental regulation.