Bellwether Services Provides Supply Chain Insight into California's Cap and Trade Program

Strategic Sourcing, Supply Risk, Environmental Regulations and Supply Chain Improvement Business Approach are shared in new column published in the ISM, e-Side publication. See brief excerpt from the authors:


A new environmental policy in California will require procurement professionals doing business in the state to address carbon cap and trade or face additional cost pressures.

The passage of the California Air Resource Board Carbon Emissions Trading Policy on December 16, 2010 means the roles of supply managers, buyers and purchasers will change measurably this year. Enterprises and suppliers doing business in California must address carbon cap and trade in a meaningful way or face additional cost pressures.

What Is Carbon Emissions Trading?

Emissions trading — better known as carbon cap and trade — is a global administrative approach used to control air pollution by providing economic incentives for achieving greenhouse gas (GHG) reductions. Simply, the California Air Resources Board (CARB) plans to implement State Law AB 32 and set caps on the pollution which can be emitted by an enterprise. As California-based manufacturers', retailers' or distributors' emissions approach or exceed the approved limits in the future, companies must purchase a carbon permit. California State Law Assembly Bill (AB) 32 could impact suppliers throughout North America.

Follow this link for Carbon Management, Carbon Reduction Approach and Program Near Term benefits from the article.

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