Greenhouse gas market to slow global warming

By: Christopher Castro

Greenhouse gases are now being bought and sold on the open market by countries concerned about climate change. The Kyoto Protocol created the market in greenhouse gases to reduce emissions of methane, carbon dioxide and other gasses heating up the planet

Greenhouse gases who are the prime culprits in global warming, trap heat in the Earth's atmosphere. Since the middle of the 19th century, human agriculture and industrialization have poured a huge amount of them into the atmosphere, where they have captured enough heat to initiate climate change andabout 0.6 degrees Celsius during the past century, according to the United Nations

The Kyoto Protocol, with more than 140 nations on board, aims to use market forces to rein in emissions by creating a market in greenhouse gasses. Under the pact, participating countries may emit a specific quantity of the gasses, and can sell off excess "credits" for profit and because of that, a lot brokers think that the agreement could make a lot of business..

Investors are funding projects that reduce greenhouse gas emissions, like hydroelectric dams and renewable energy plants, and earning investors credits to offset emissions from factories and power plants. The biggest buyers were the Japanese companies and Dutch government who are snapping up credits offered in regions such as Asia and Latin America.

The United States proposed the market plan for the Kyoto Protocol when it first signed the treaty in 1998. It withdrew in 2001 arguing that the treaty failed to appreciably slow global warming or include developing nations. Despite initial resistance, it has been embraced by Europe and Japan as an affordable way to slow climate change.