What is a greenhouse gas and what does it have to do with global warming?

The “greenhouse effect” refers to the temperature regulation effect that certain atmospheric gases have on the earth. The temperature-regulating gases, called “greenhouse gases” or GHGs, form a blanket around the earth that traps some heat from the sun within the earth’s atmosphere, keeping the planet warm and habitable. “Global warming,” or climate change, can occur when the blanket of GHGs gets thicker. Climate models from the Intergovernmental Panel on Climate Change, as well as models from other scientific bodies, indicate that global concentrations of GHGs have been rising steadily over the past 100 years. As atmospheric concentrations of GHGs increase, the greenhouse blanket gets thicker. This cause heat to be trapped in the lower layers of the atmosphere and may cause global average temperatures to rise.

 What is cap and trade and how can it help reduce emissions?

A cap-and-trade emission trading system is successful from both environmental and economic viewpoints because:

·                 It relies on a stipulated environmental goal—an emissions limit, or cap. Direct monitoring of emissions is used to verify that the cap is achieved so as to insure the value of the tradable allowances.

·                 It provides emitters with the flexibility to apply the least-cost emission reductions sooner than they might otherwise.

·                 It provides direct financial incentives for new low-cost control technology and other approaches to reduce emissions.

·                 Banking and sale of allowances provides an incentive to make larger than required reductions in a given time period.

·                 It establishes a price signal to help minimize waste of scarce resources.