What is "Contraction and Convergence"/"Cap and Share"?

C&C plans for the Carbon Footprints (as calculated per person) of each Nation to Converge to the same level, then that level will slowly decline over time. This approach has broad support across Governments, Parties and Countries and is likely to form a cornerstone of future negotiations. Per capita equity is planned for 2045. In the meantime Countries will be able to trade their Carbon Quotas in a system called "Cap and Share" (www.capandshare.org). Since the poorer less-developed World has a per capita Carbon Footprint much lower than the planned convergence level then they will be able to sell a portion of their allowance. Since richer industrialised Nations are exceeding their allowances then they will have to buy further rations from the poor. Hence the flow of income is reversed and flows from rich to poor. Since the poorer countries are those most likely to be worst hit by Climate Change, yet are those who are contributing the least the GHG emissions, then this is an appropriately just measure.

Why be concerned?

The other factors to effect Business are regulation and taxation. There will be a decline in Taxation on incomes. Instead here will be greater taxes on Consumption of all kinds. In future the only profitable Business will be that which can make the most efficient use of the resources available. This means using as little fossil fuel as possible. New Taxes on Consumption will bring revenue for a new a system of rebates and incentives to use renewable alternatives such as Solar and Wind Power. Any business unable or unwilling to adopt the substitutes will find themselves uncompetitive.

So, Business as Usual then?

Business Winners and Losers

What's in it for me?

Without a plan Business has no future. If action is not taking then Globalisation will lead to a race to the bottom where the worst emitters of GHG will win the economic battle to the long term detriment of us all. Without a global cap on GHG emissions then, ultimately, there will be a rapidly shrinking World for us to do Business in. Since Business also faces the challenge of declining Energy supplies the option of just cranking up the Air Conditioning and closing our eyes is no longer available. We will transition to a low energy future. We will have to adjust to a changing world. The climate will shift. Patterns of living will change. A time of consequences is upon us now. Those who ignore the danger may well make short term windfall profits. But there will be little left to spend that income on. A Business with a future is a sustainable one. A sustainable Business has a future.

Krofire Enterprises is planning on making a sustainable profit and staying in Business for the foreseeable future. We plan to be a winner. To plan for that future, without destroying the markets and resources that sustain our Business, we are pressing for equitable agreements on GHG Emissions. There is no alternative.