Cap and Trade

We had a brief conversation about cap and trade yesterday. We visited the DMV Campina milk company who is also the 3rd largest producer of milk products in the world. We were there to discuss their waster water etc. but when we saw the smoke stacks in the drawing carbon emissions came up.

In 2005, Campina implemented its cap and trade program. When the cap and trade program was implemented the credits were not auctioned off they were negotiated by the companies and government. Campina had negotiated 130,000 tons knowing that is not what they would need. Last year they only used 106,000 and sold the rest off at $12 Euros per ton. That is 24,000 tons at $288, 000 Euros. The program is administered by the national government to prevent hot spots and have more control over types of industry.

Over time companies are required to reduce their emissions by 2% every year.

Today we are off to Zieland to see the Delta Works.