The Bloomberg New Energy Finance has recently predicted that by 2013 the EU carbon market will be worth € 80 billion and then increase to € 94 billion by 2014. This market in essence is a response based on free market principles to the issue of climate change. Even after the checkered track record of Kyoto Protocol the world has not lost faith in the idea that emission reduction and mitigation is the most effective way to fight Global Warming. As we continue to cap and trade our net emission and try to make a quick buck while saving the planet another idea has been gaining prominence; Carbon Sequestration.
During the last decade, the reporting of nonfinancial information has become widespread. While only 44 firms followed the Global Reporting Initiative‘s (GRI) guidelines to report sustainability information in 2000, the number grew to 1,973 by 2010. National governments and stock exchanges have promoted sustainability reporting by adopting laws and regulations that specifically mandate this form of disclosure.
Climatecouncil.org defines emission intensity as “the volume of emissions per unit of GDP”. The purpose of this metric is to determine the financial implication of polluting so that the policymakers can come up with a budget to mitigate the damage.