The chemical industry operating within a global framework on climate change is now faced with a broad base of risks and opportunities that threaten key segments of the supply chain while driving efficiency and innovation in others. The previous sections examined various policy instruments used by government to mitigate GHG emissions through emissions trading and taxation; this section outlines various positions taken by leading companies and chemical associations such as Cefic to limit vulnerability and preserve integrity of emissions trading.
Key lessons taken from the existing Kyoto Protocol and EU ETS form the basis for companies to better formulate their corporate position and influence climate policy to lessen the economic burden of carbon compliance while generating new revenue streams from technology-based solutions to climate change. This section focuses primarily on how policy is designed to minimize market distortion and leakage while imposing a similar level of responsibility across industry and consumers operating within an emissions capped economy.
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