The Carbon Constrained Economy
Currently, industrialised nation's economies are carbon based; ie., in that carbon based energies such as coal and oil are the major natural resources used in energy production and transportation. However, the production and use of carbon based energy emits ever greater amounts of carbon dioxide into the atmosphere, increasing the greenhouse effect and accelerating global warming.
Countries around the world are now looking for ways to reduce the amount of greenhouse gases released into the atmosphere by human activity in order to ameliorate global warming and the greenhouse effect. The actions being undertaken have resulted in many people concluding that the world is heading toward a carbon constrained economy. A carbon constrained economy is an economy which has to deal with the future effects of global warming (such as increased insurance premiums caused by increased severe weather events), and constraints on the emissions of greenhouse gases.
Many companies, their shareholders and governments now view global warming as a real financial risk. In a carbon constrained economy companies and governments will need to address the risks and opportunities presented by global warming, and changes to energy production and usage. The heavy reliance on carbon based energy will need to change due to shareholder pressure and possible taxes on greenhouse gas emissions. Once the reliance on carbon based energy has changed, the world will enter into the carbon constrained economy.
