Environmental Engineering Reference
In-Depth Information
passed as a law or by one country or a group of countries, such as the European Union, or it
can be a voluntary program between private parts that sign a legally binding agreement (e.g.,
the Chicago Climate Exchange cap-and-trade system).
A cap-and-trade system is not a tool just developed for carbon, but it is applicable to
curve the emissions of any pollutant. For instance, the Environmental Protection Agency
(EPA) has been running a cap-and-trade system for many years for the reduction of acid rain
by capping the amount of sulfur dioxide that power plants can emit while burning fossil
fuels. The EPA claims that by 2008 the emissions of sulfur dioxide decreased by 51 percent
from 1990 (EPA, n.d.).
In a government run cap-and-trade system, the government sets a maximum amount of
emissions that will be allowed—the cap—and issues allowances, which are tradable instru-
ments up to the level of the cap. Because a reduction of emissions is the goal, the cap is
decreased progressively until the levels of emission are reached.
In a cap-and-trade system, the government fixes the caps for the present time, sets the
reduction goals for the future, and monitors compliance. The government also issues permits
that entitle the holder to release carbon dioxide (or pollutants) into the atmosphere and auc-
tions the permits on the market. Once the cap is set and allowances issued, emitters (i.e., the
sources), have different options to follow:
1. They can hold to the allowances to cover their own emissions in the present or near future.
2. They can reduce their emissions below the cap, so they can free allowances and trade
them in the market.
3.
They can continue emitting to levels higher than the cap and cover the emissions beyond
the cap by buying allowances in the market.
One of the merits of a cap-and-trade system is that sources have the freedom of choosing how
to comply with the cap and where and when to perform reductions.
SUMMARY
Environmental claims have the objective of attracting more customers and increasing sales.
However, to avoid falling into the greenwash trap or not complying with regulations, claims
need to be truthful and substantiated. Different countries have distinct rules about environ-
mental claims, so it is important to consult local regulations. The ISO 14000 series contains a
special group of standards, the 14020 family, which establishes guidelines for voluntary
environmental labels and declarations. This family of norms stipulates types of environmental
claims: Type I, Type II, and Type III. A Type I claim is verified by a third-party organization to
verify the authenticity of the claim. Type II claims are self-declarations with no intervention of
a third-party entity. And Type III claims are based on the life cycle assessment of the product.
Environmental labels are a means to inform consumers about environmental qualities of
products or services that otherwise are not obvious, which can be self declared or third-party
verified. Environmental labels are divided in three groups: seal-of-approval, single-attribute
certification, and report cards. A seal-of-approval is a third-party certification that falls into
the ISO Type I claim. Single-attribute labels are self-declared and therefore Type II claims,
whereas report cards are based on the life cycle assessment of products (a Type III claim).
Sustainability reporting is a voluntary tool used by companies to disclose their
sustainability efforts to stakeholders with the main objective of creating public awareness.
Sustainability initiatives are generally incorporated in a broader report of corporate social
