As the world leans more and more toward environmentally friendly practices, companies must conduct business in a new way to keep up with the times. One way to do this is to utilize carbon credits through cap-and-trade programs.

Companies and industries can have carbon caps that regulate an enterprise’s amount of carbon dioxide and other greenhouse gases (GHGs) that can be emitted into the atmosphere yearly. Businesses in a regulated industry are required by law to reduce their emissions and have business consequences (often fines) if they exceed their cap. An example of this is the automotive industry, which has well known fuel economy targets resulting in lower emissions.

To the extent that a company overperforms their target, they may sell their credits to other companies.  An example of this is Tesla, which sold nearly $1.2 billion of California ZEV (Zero Emissions Vehicle) credits in the first three quarters of 2020. The buyers were other automotive companies who needed credits in order to be able sell vehicles and comply with California law. When this happens, it is called “cap and trade”.

While there are some cap-and-trade initiatives in the United States, so far there is not a national program. California has taken the lead with its own economy-wide cap-and-trade system, which will help it become carbon-neutral by 2045.

“What we found, no surprise, is that actions that save you on carbon almost always save you on money. Because after all, those emissions are a waste,” said Daniel Kammen, a professor of energy at the University of California Berkeley in a recent Forbes article on the subject.

Enabling carbon allowances to be bought and sold incentivizes companies to invest in environmentally friendly methods and machinery to maintain cost-effective ways of producing emissions. Companies can also reduce their emissions by switching to greener methods of transportation in their logistic supply chains, as an example.

In 2018 transportation accounted for the largest portion of total U.S. GHG emissions, which makes it a natural place in the supply chain to look for greener solutions.

Marine transportation is a more fuel-efficient form of transportation, which in turn, produces less emissions and subsequently allows for companies to profit off of unused carbon credits. Green Shipping Line is committed to offering a sustainable way to conduct business that provides low greenhouse gas emissions. This is crucial as more initiatives and legislated policies are brought about to reduce pollution.

Green Shipping Line will provide an eco-friendly marine transportation option on the American Marine Highway that can reduce emissions for a company that is currently using only trucks or railways as their only methods of transport. The American Marine Highway consists of 25,000 miles of navigable coastal and river waterways, the longest navigable coastal and river water systems in the world. It also includes over 150 existing commercial ports. Unfortunately, the entire system is highly underutilized presently.

“Today, the American Marine Highway offers the greatest green opportunity to expand our landside transportation systems. Using our waterways is a 21st century solution to the existing ’infrastructure crisis’ and our future distribution needs”, said Percy R. Pyne, founding partner of Green Shipping Line.

In the future, more environmentally friendly methods that reduce greenhouse gas emissions will be an important part of the dialogue of how businesses are conducted. Eventually industry, national and state-based policies will require companies to reduce their production of pollution.

Carbon credits provide not only environmental benefits, but also economic benefits to companies. Moving goods on Green Shipping Line’s vessels along the American Marine Highway can be an effective way to create transportation carbon credits.