First blog

Let's start off with something of profound significance.

Emissions Trading For The Householder Made Easy.

Emissions trading is usually undertaken between the energy manufacturing sector, often known as the polluter, and the market. To get the market to enter negotiations, the manufacturing sector generally uses the services of the horticultural and confectionary industries as well as restaurant and liquor suppliers to entice the market to enter into emission trading agreements. Negotiations generally begin with due diligence being undertaken in closed door meetings where all factors that each party have to offer are open for each party to explore thoroughly. It’s very much up to the manufacturing sector to discover the special trade development zones around the market place that open the doors to advanced negotiations and apply necessary stimulation measures to each zone.

The market will lay down the terms of negotiation depending on their need for trading. The services provided by the liquor industry will influence how quickly trade barriers are removed. Although early signs of inflation are starting to occur it is still not time to begin detailed negotiations as many market fundamentals need to be explored slowly, even massaged. The manufacturing sector will be represented on the trading floor by a sole trader, one who is up for sustained negotiations. Once the market opens, experienced traders tend to dive in head first to snatch up bargains close to the bottom of the market. Once the market signals satisfaction with early negotiations and inflation is at a peak, it is time for advanced trade negotiations to begin which is marked by the sole trader entering the trading floor.

Trading negotiations involve much to-ing and fro-ing with give and take by both sides. The market expects protracted negotiations and is always disappointed either in premature trades or early withdrawal from the trading floor. These are bad signs for the manufacturing sector and will affect and even curtail future negotiations. Once the market starts to rise, the manufacturing sector should position themself for more intense negotiating activity. The key performance indicator is that the market starts to rise and fall in quick succession. Tense negotiations at the top of the market are the signal for emissions trading to begin. The manufacturing sector can now flood the market with carbon credits unless prior agreement has been reached for carbon sequestration. This is followed by the manufacturing sector collapsing, rapid deflation and sole traders withdrawing from the trading floor. The market however expects post trading negotiations to continue to finish off loose ends and any attempt to leave the negotiating table early after successful release of carbon credits may deleteriously affect future negotiations. It is at this stage that the market may leak details of the negotiations, and put at least one of the parties on the spot.

The manufacturing sector can rely on organic growth to replenish inventory of carbon credits. Once inventory of carbon credits is back up to tradable stocks, trading can only continue if the market continues to be properly stimulated. The use of a representative from the liquor industry as an intermediary is recommended. Quite often the market does not wish to trade which presents several problems for the manufacturing sector. The first is a massive carbon credit build up whereby warehouses a filled to over-capacity. Customer loyalty programs prevent the manufacturing sector seeking out other markets for trading. And despite a proliferation of plug and pay services, use of these services is ill-advised as is manufacturers swapping credits amongst themselves. If inventory is beyond capacity, the manufacturing sector should turn a blind eye to employee pilfering of excess stock.

Emissions trading is here too stay so manufacturers need to develop skills in all facets of negotiating as well as cultivate harmonious relationships with a market player.