Further pressure on businesses to reduce their environmental footprints is coming
from government regulation, often in the form of Emission Trading Schemes (ETS)
or so-called ‘Cap and Trade’ legislation. For example, the European Union’s
Emissions Trading Scheme has recently been extended to cover a greater range
of industries and is based on the principle that companies have a basic allowance
for carbon emissions – if they go beyond that level they have to buy additional
allowance from other companies who do not fully use their own allowance. Similar
schemes are currently contemplated
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