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By Glenn Meeks, Editor – Nature's Packaging Reducing greenhouse gas emissions is at the forefront of today's business' efforts to combat climate change. 42 PalletCentral • November-December 2022 palletcentral.com T he wooden pallet and container industry has been promoting the use of wood as an economical and sustainable solution for businesses and their supply chains for years. Our business model is built on recyclable and reusable packaging solutions so that customers can have faith and hard data in the implementation of their sustainability initiatives. As climate change and greenhouse gas emissions have taken a more prominent place in consumer concerns, governments are implementing new programs and models to incentivize industries to cut emissions that have a detrimental impact on climate and populations around the world. One of the most successful models to accomplish these goals has been "cap and trade." In this Nature's Packaging post, we'll take a quick dive into cap and trade to learn more about it. What is Cap and Trade? In order to combat climate change, governments have employed a variety of methods. One such method is cap and trade. Cap and trade is a system in which the government places a limit, or cap, on the amount of pollution that companies can emit. is system would place a limit on greenhouse gas emissions and allow companies to buy and sell allowances for these emissions. e goal of this system is to reduce emissions gradually over time while giving companies flexibility in how they meet the caps. Companies that exceed their allotted amount must purchase allowances from other companies that have not used up their allotment. is market-based approach provides an incentive for companies to pollute less, as they can then sell their allowances to other companies. e overall goal of cap and trade is to reduce pollution by setting a limit on emissions and creating a market for buying and selling emissions allowances. Critics of cap and trade argue that it will lead to higher energy prices and place a burden on businesses. ey also argue that it is unfair because it allows some companies to emit more greenhouse gases than others. Supporters of cap and trade argue that it is necessary in order to combat climate change and that it will create incentives for businesses to develop cleaner technologies and implement sustainability processes. A Short History of Cap And Trade In the United States, the first mandatory cap- and-trade program was established by the Acid Rain Program of 1990. e program was designed to reduce sulfur dioxide and nitrogen oxide emissions that were causing acid rain. e program was successful in reducing emissions and provided a model for future cap-and-trade programs. According to the EPA, the program was a "pioneering effort" that helped the United States meet its Kyoto Protocol commitment. In 2012, the Obama administration implemented a cap-and-trade program for greenhouse gas emissions. e program placed a limit on the amount of carbon dioxide that could be emitted by power plants and other large emitters. e goal of the program was to reduce greenhouse gas emissions by 17% by 2020. However, the program iStockphoto.com/gorodenkoff

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