Current business practices, based on the consumption of fossil energy resources, have led to unsustainable levels of greenhouse gas emissions within Earth’s atmosphere. Specific measures put in place to reduce global CO2 outputs via the Kyoto Protocol proved to be inadequate. Current global emissions regulations, management and trading solutions lack transparency, security, fairness and simplicity. Assets need to be real, measurable, and provable. This is often not the case in how these practices function.
The Paris Climate Agreement has been created in place of the Kyoto Protocol in agreement within the United Nations Framework Convention on Climate Changeand will go into effect in the year 2020. The Paris Agreement has been structured to deal with greenhouse gas emissions mitigation, adaptation and finance.
“Additionally, the agreement aims to strengthen the ability of countries to deal with the impacts of climate change. To reach these ambitious goals, appropriate financial flows, a new technology framework and an enhanced capacity building framework will be put in place, thus supporting action by developing countries and the most vulnerable countries, in line with their own national objectives. The Agreement also provides for enhanced transparency of action and support through a more robust transparency framework”.-
It is estimated, 53 Trillion USD will be required to be invested into infrastructure related systems to meet the Carbon Reduction goals of the Paris Climate Agreement. These investments represent new business models and financial opportunities for Project Developers and Carbon Management Industries.
In 2011 the modern Cap and Trade system, under the Kyoto Accord, World Carbon Trading Markets peaked at 173 Billion USD. This trend is expected to continue beyond these numbers once the Paris Agreement goes into effect in the year 2020.
Watch the NASA video for a visual tour of the world’s CO2 emissions: