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Free «Nissan Motor Corporation-Carbon Trading» Essay Sample

Nissan motors are the one of the worlds popular car manufactures. It was founded in 1934 by Yoshisuke Aikawa Despite the fact that it is a multinational company; it is headquartered in Japan and was formerly operating under the Nissan group. This however has changed with CEO Carlos Ghoshn in charge of its operations. Aside from Toyota and Honda, Nissan is the third largest car manufacturing company in Japan. Its brand cars also includes luxury cars that such as the Nissan Infiniti. Nissan corporation has not been very active in the reduction of environmental pollution but this is about to change as they prepare to launch the Nissan leaf model. This particular car is only meant for short distances but uses eclectic charge for power instead of the traditional bio-fuel which has been found to emit pollutants tat damage the environment. Nissan has one of the greatest car share sales in the Americas owing to its alliance with Renault.

Considering the fact that it is imperative to reduce global pollution, the venture of Nissan into carbon trading will guarantee positive implications for the environment in general. This is because many of the fumes emitted by exhaust pipes from car engines pollute the air and in recent times, it has been found to be a major cause for global warming whose effects are already being manifested in several parts of the world. Nissan motors have shown commitment to this end by engaging in n studies to improve the quality of their engines. This has seen their engine models be nominated as the best for fourteen consecutive years. The new compact electric car will reduce both noise pollution and greenhouse emotions and will guarantee low cost of fuel as it only uses electric charges.

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It is no secret that the emission of green house gases by industries the world over have chiefly resulted in the dilemma faced by every region or nation of the world; Global warming. It effects are very vivid and glaciers are purported to be melting thus endangering polar bears (Hillebrand, 2008). But it is not only polar bears that bear the brunt of climate change as a result of green house emissions. Human beings are affected by unpredictable weather patterns that have resulted in severe conditions such as droughts and extreme floods which in their wake, leave an extensive trend of destruction. The increase in energy costs has led not only companies to rethink strategies of lowering carbon emissions, but also individual people who wish to further lower their personal contribution to the emission of green house gases. This is facilitated by the various markets available for carbon reduction (Purswani, 2008).

Carbon trading basically operates with credits which are exchanged by the different entities in the industry. They may be agricultural companies that have accumulated carbon units in their farms or forests or giant companies like Nissan who contribute the carbon itself. They are required to purchase credits for the reduction of carbon emissions through a feasible scheme called the cap and trade system. It allows for members to sell their carbon in exchange for credits which generate allowances for their companies. This system relies on accuracy of the cap and is feasibility. It is important to realize that if the cap is set very high, then member companies that opt to reduce their carbon emissions suffer major losses. If it is set to low, then there will be scarcity of allowances that will in turn bring about overpricing. There however exists a rival scheme that competes with carbon trading. It is called carbon taxation.

It is some hoe relevant to carbon trading due to the fact that they both seek to achieve the same goal (that of reducing the emission of carbon dioxide). However, unlike carbon trading, it is not in ones place to determine whether they should reduce or not. It is properly provided for by the government and analysis on a company's use of fossil fuel, determines the level of carbon emission by that particular company. It is then calculated and a particular fee imposed on every single ton of carbon emission. Its main strategy or aim is to make the emission of carbon fumes expensive so as to challenge industry players to shift to known ways of carbon reduction in which carbon taxation is one.

Carbon trading as a mechanism for lowering the emission of green house gases was constituted as long term policy by the intergovernmental panel on climate change, which is a subsidiary of the United Nations. It is the concern of many nations and people alike that green hose gases have had the most negative impact on the environment, thereby resulting in global warming. Carbon dioxide is considered one of the most toxic of all green house gases and therefore its regulation is very import. A number of factors have led many governments to institute carbon trading schemes for the reduction of carbon quantities that are being emitted.

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First of all it is the common goal of bettering the environment and the reduction of global warming tat chiefly led to carbon trading. Also, the fact that many companies stand to benefit from this particular trade (especially those with high carbon emissions), seemed attractive and luring as it counters the increased prices in energy and cost of production. Due to its many incompatibilities, the banking systems of many countries welcome with open hand s trading in carbon as it is very lucrative. This is however hampered by the lack of transparency and politicization of the process. Generally speaking, carbon trading has been facilitated by the fact that companies with expensive costs of reduction can purchase credits from those whose cost of reduction is cheap.

Though the system has been credited with efforts in the reduction of global emissions of carbon dioxide, many have their own reservations. Some perceive the trading in carbon credits as exploitative and being controlled by wealthy and greedy individuals. It almost amounts to malice in the pretence of cleaning the environment by ridding it of carbon dioxide. In real sense, not those who happen to be proponents of carbon trading only wish to benefit from the numerous profits that are in abundance from brokerage activities. Many of these individuals include high profile personalities in the banking industry. It is very important that government will be present for an effective carbon scheme and this is what is lacking (Lohmann, Reyes and Gilbertson, 2009). In its place, the financial industry rejoices all the way to the bank while the underlying factor (that of reducing carbon dioxide), remains unresolved or just partly tackled. Many see it as a postponement of the real mess that is inevitable.

However in as much as there is ranting and endless banter regarding carbon trading, it is very important for the realization that the substantial and constant reduction of carbon levels is in itself a very efficient remedy especially to the problem of climate change. The carbon trading market has also been credited with innovation and the providence of capital for investment in new technologies to further combat global warming. The cap and trade system is very effective as it keeps in mind and brings into perspective how developing nations with very little levels of carbon emission, can benefit from carbon credits. All in all, for this particular trade to be effective, strong government policy making is required. It is in line of this that many of the players in the carbon trading market are seeking insurance for carbon emissions (Financial Times, 2011).

Because of the increase in fuel and energy prices, many companies are resorting to cheaper ways and strategies of ensuring energy supply for their daily operations. This is no different for Nissan Motors as its sales have been affected recently by the effects of the global economic crisis. It is possible to imagine how much carbon dioxide is emitted from production plants tat are operated by Nissan the World over. This is regulated by governments in the countries of operation and by international laws that permit emissions only up to a certain limit. Because of these laws, companies are forced to reduce their carbon emissions by redirecting it where it is lacking, like in the forests. Nissan Motors has incorporated new strategies to reduce the emission of carbon dioxide.

 
 
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The very fact that has led to the current dilemma is the over-reliance on traditional sources of energy for power generation. This has badly damaged the ozone layer and facilitated global warming. Nissan Motors has been involved ion ways of reducing the emission of green house gases and t have started building a wind farm in its UK production plant, to supplement other forms of energy. Seven turbines are to be built that will have the capacity to produce electricity for over 2,500 domestic homes. But what is of great importance is the fact tat in so doing; it will have the effect of reducing the emission of carbon dioxide by over 10,000 tons yearly. The plant will also be very cost effective for Nissan and will serve as a motivational basis for others to follow especially bearing in mind that Nissan was awarded certification in recognition for its environment management efforts.

Nissan Motors have completed the manufacturing of a new type of fuel efficient eco-friendly car that are either electric vehicles (EVs) or fuel-cell vehicles (FVCs). The 100% electric, zero-emission vehicles; have no gas and no tailpipe that emits the non friendly gases to the atmosphere. They run on charged lithium batteries instead of the conventional batteries that rely on fuel for positive charge. Unlike them, the lithium batteries rely on electricity for powering the engine and thus have the capacity to be promoting a cleaner and friendly environment. Above all drivers enjoy a quite drive.  

This has seen Nissan motors turn from the use of carbon based energy and thus further reduced its cost of production and operation. One of the cars which are the subject of this new invention is the Nissan Infiniti whose emission of carbon dioxide is almost zero. However on of the short comings of this new inventory is the fact that the cars are only meant for short distances and thus benefit only a few as many still will prefer other conventional means of traveling long distances, which consume a lot of energy thus leading to emission of harmful gases. Nissan motors are aiming at being the global leader in zero-emission mobility. In partnership with Renault, Nissan is taking a comprehensive approach towards a sustainable green mobility. Nissan motors are investing considerably in solar energy for the purpose of powering it many production plants. This allows for the use of natural sources of power that require minimal reproduction. Through solar energy, Nissan contributes to massive cuts in carbon dioxide which would otherwise have been released into the atmosphere. It is reported that plans are underway to invest in the production of solar compatible engines which will further reduce the emission of carbon dioxide by car exhaust systems thereby reducing pollution.

It is imperative for the world to realize the intensity of the effects of global warming which brings about unpredictable whether patterns. This is because the earth as we know it is losing a lot of its ice through global warming caused by the emission of harmful gases in to the environment. The preservation of the environment should start from every individual, and then spread to corporate companies such as Nissan Motors. For vehicle manufactures, it is even more important that reductions in the emission of carbon dioxide be monitored and addressed through reductions strategies like the cap and trade system of carbon trading. This is because there are different uses for accumulated carbon dioxide especially in industries which can be sold and credits purchased in their behalf. I think that every vehicle processing company should embrace carbon trading as it has greater benefits for the whole world in general. This is because the transportation industry relies on their innovation in the production of more fuel efficient vehicles that rely on electricity or natural gas rather than fossil oils. Carbon emission is more prevalent in cities and urban areas and thus is more likely to affect many people if it is not addressed wholly and in real time.

Bearing in mind the many challenges that face companies in the reduction of carbon dioxide emissions, it is very pleasant to se that Nissan motors are leading the Asian market in addressing this very pressing issue. However, it is important for the industry players to not loose focus of the motivation behind this system of carbon trading. It is of great concern tat some unscrupulous individuals are bent on overpricing credits for their own profitability. The way forward in my own opinion, is to create a more tightly structured regulatory service tat will ensure fairness whether in carbon trading or taxation. It will be noted that not every company has the capacity to engage in carbon trading. Rusk assessment should be taken by individual companies before venturing into this market which has the potential of being very unpredictable and very tumultuous. In order for carbon trading to be successful as an effective mechanism of green house reduction, then political will is required which will give birth to proper policies that facilitate the smooth relationship between prospective buyers and sellers. This will serve to increase trust which seems very much to be lacking.

   

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