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Case Title:

Towards a Cleaner Environment: The UK Emissions Trading Scheme

Publication Year : 2005

Authors: Chithra Gopal

Industry: Not Applicable

Region:UK

Case Code: CSR0028B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
The Kyoto Protocol (KP), coming into force has resulted in the emergence of emissions trading, a market-based mechanism that is helping the KP signatories to meet emission reduction targets in a cost-effective way. The UK emissions trading scheme (UK ETS), the first of its kind in the world is helping a heterogeneous group of participants gain early experience in emissions trading. This is expected to give them a head start in the emerging global carbon market. The case talks in detail about the emergence of global greenhouse gas (GHG) market, and the launch of UK ETS, as a precursor to the European Union Emissions Trading Scheme. The success of this incentive linked voluntary scheme has helped the UK to reduce its GHG emissions.

Pedagogical Objectives:

  • To understand how the fast changing markets for emission reductions act and how companies are using economic tools to align environmental goals with business goals.

Keywords : Corporate Social Responsibility Case Study Kyoto Protocol, greenhouse gas, Emission trading scheme, global green house gas market, incentive payments, transfer of allowance

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