Carbon Management Strategies in Manufacturing Companies: An Exploratory Note

In order to meet the Kyoto Protocol’s greenhouse gas emissions targets, the EU has implemented an Emissions Trading Scheme (EU ETS) as a cornerstone of its climate policy. The main attribute of this mechanism is its inherent flexibility. It offers companies the possibility of tailoring a carbon management strategy that is the most cost-effective, i.e. reducing actual emissions vs. buying allowances to emit. Although the EU ETS was launched in 2005, to date little is known about its implications for corporate carbon management. The study provides some original insights into corporate carbon management strategies by deploying a case study of two Slovenian manufacturing companies.