Are business-to-business environmentally preferable purchasing programs becoming a force for greening business?



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    Under the cap-and-trade system, industries would be allocated allowances limiting them to a certain amount of greenhouse gas emissions each year.  Some facilities (cleaner operating companies) may find it more economical to reduce their emissions and then sell their surplus emission allowances as credits, while others (companies that have high abatement costs) may find it cheaper to buy credits to offset their emissions rather than make direct reductions.The goal of the cap is to prevent increases in net emissions, and the cap level will be reach regardless of who is abating or buying offsets. As the cap gets lower, it will become more expensive to purchase offsetting abatement from a cleaner company, and dirtier companies will have an incentive to invest in cleaner facilities. This program is a froce for greening business.

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