Posts tagged ‘Profit’

Green Energy Credits Can Help Your Business Profit from Being Green!

Here’s a thought: can we control pollution by building a nation-wide program that can give financial incentives to industries that can better their environmental and operational baselines? A program for carbon emissions trading, trading green energy credits, does just that. The credits, and the trading system that has evolved from them, are a unique way to control air pollution that could benefit your company on the bottom line as well.

The 1990 Clean Air Act amendments defined a new era in means of control of air pollution: provide for an overall limit on emissions, for specific pollutants for specific industries, and let the industries work together to make certain it works, by giving them a way to benefit from doing better than the permit requires. This program was the result of the recognition that we need electricity, that energy generation emits pollutants, and that simply demanding massive reductions in emissions is a certain way to make the cost of electricity very high.

Under the EPA program, a “Cap”, or a maximum permitted amount of emissions, is defined for a group of sources. Permit holders are given allowances to emit a specific quantity of pollutants (e.g., a “ton”). The total number of allowances across a target group defines the level of the cap.

Industries can meet their emissions compliance targets by technology, that is, with air pollution control equipment, or by acquiring allowances from other permit holders, at a price. So, those who do better than their permit requirements have allowances available that can be sold to other operators, which provides all the parties in the group with a market-based means of achieving compliance, since the total amount of allowances represents the maximum allowable total emissions from that industry group.

Those who have money for technology install it and reduce their emissions. They can sell their excess allowances to those who do not have the newer technology, and they will certainly sell them for as much as they can–at more than the cost of the technology-thereby eventually forcing the others to spend the capital budget to be competitive.

Further, EPA regularly removes a number of allowances from the pool to ratchet down the total amount of air pollution. This program has been overwhelmingly successful in controlling Acid Rain.

So interest has been building in finding a similar means to reduce greenhouse gases. EPA doesn’t regulate these yet in this fashion. But a financial market has developed that is willing to assign values to credits, and in Europe an already existing program provided a model.

In the US, the Chicago Climate Exchange allows its members to trade carbon financial instruments, based on caps and offsets agreed to by members and the exchange. Members trade contracts based on 100 metric tons of carbon emissions per contract. The mechanism for defining the cap is a baseline of operations for each business or member. If your operation does not directly emit carbon dioxide, other emissions can be converted to carbon dioxide equivalents, using a Greenhouse Gas Protocol from the World Business Council for Sustainable Development. The membership requires a legally binding commitment to a phased reduction in carbon generation.

Entities who provide and trade these credits include car makers and coal companies, forestry companies, cities, waste companies, universities, and states. The emissions sources and offset projects are found across the hemisphere and include fleet fuels, forest plantings and agricultural methane control schemes–things that benefit our air via reduction of CO2.

So, how do you control air pollution, without limiting the benefits of of the energy we use as a modern civilization? Create a way to make limiting air pollution less costly, and even profitable! If anyone tells you you can’t make money by controlling pollution, tell them there is power in green! it’s green, like money, and trades, like commodities, and traders and industries both benefit!

Rick Demkovich is an environmental consultant with more than 20 years in the field, and is the president of Environmental Development Solutions, Inc.

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Profit For The Household Electrical Appliance Enterprises Still Too Early To Mid-year Report

Recently, Konka, Hisense, TCL, Changhong, Xiamen Overseas Chinese and so on successively published the 2007 interim financial statements, outside the huge loss of inter Xoceco, TCL, after losses in two consecutive years has come in the first profitable reported, Konka, Changhong was 42.47 million yuan respectively, and 1.9 billion net profit. Some people believe that China will usher in home appliance manufacturing industry operating profits on the spring, and pointed out that in the second half of the National Day, New Year and Chinese New Year will usher in sales of home appliance market peak, the annual reports of good corporate performance can be expected.

In fact, the mere listing of categories on the home appliance company in the first half of mid-year report to determine the most businesses and even entire industries operate successful, it is biased, the Chinese appliance to get rid of lack of core technology, profit and performance of the embarrassing situation, around the over trade barriers, leading the world market, still needs a long process.

Should be noted that home appliance industry suppliers in the upstream, midstream and downstream manufacturing facilities appliances home appliance chain channel, to date, the entire value chain does not form a harmonious development of win-win situation. Led by the appliance manufacturer manufacturing chain is under a tremendous pressure on the squeeze under the pain, the upper mold development, product design, technology continues to introduce new materials in the upstream and downstream channels and channel operators also the relationship between customer and product depth introduction of anti-reflective and constantly adjust the control strategy of the manufacturer. This force does not have core technology, is located in the middle of the appliance maker in the continuous innovation of products and technologies, while looking for new breakthrough way, from the simple pursuit of enterprise scale, turning the pursuit of the concept of marketing, management quality and corporate profitability.

Author of weak corporate profits, household appliances and found the reasons, first, short-term strategy and profit-oriented Chinese enterprises obvious characteristics; Second, Chinese enterprises and mechanism of the present system dictates, although the office market economy, but the leaders of state-owned enterprises and encouraging mechanism is still in the plans of the times, frequent personnel changes, can not really feel free to continue to do business and strengthen health; third home appliance industry is obviously insufficient technical reserves, patents, technology and standards is the competitive weapon and source of profit, and home appliances manufacturing has not yet forged the advantage in this regard; Fourth, continuing the vicious cycle of competition, many appliances do not have core technology, can not bring a premium brand, but for market share, only to the price war, Enterprises continue to advance the survival of resources; five cost-cutting capacity is weak, household appliances enterprise management, high marketing costs, management quality and efficiency is not high, this is cause the product to an important reason for low profitability; 6 is to be mature people’s consumption concept , consumption habits and regional disparities, need rational guidance.

China’s population is aging, migrant workers low-cost era will end, there is a huge manufacturing country and the innovation gap, we must understand that a strong manufacturing capacity to China is not fundamentally bring about a sustainable and stable business profits, decreasing resources and the various costs continue to rise today, the Chinese manufacturing industry to win the future, get rid of the embarrassing fate of the foundry, you must first get rid of the core technology of the “short leg walking” approach, so as to enhance the added value of products, capabilities and brand premium their overall competitiveness.

Always rely on imitation of the survival of a business or industry there is no hope, innovation and value is the future, the only way for the future of home appliances in China. Therefore, household appliances profit Center Daily News applauded too early.

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