The Green House Gas (GHG) audit industry is relatively new, and many are clamoring to enter this market before it becomes too costly to do so. As of right now, there isn’t a lot of competition, and many are predicting that the industry will grow as the government begins to clamp down on known polluters. However, as it stands, the process of green house gas auditing is fairly complex. There are numerous variables to account for, new equipment to train on, and very little experience to base a business off of.
Because of this infantile stage of development and the long list of complications involved, the only real way this market is going to be profitable as new companies enter it is if it can rely on government funding. While GHG auditors have had some success finding corporations willing to pay the hefty audit fee to appease their environmentally conscious consumers, those types of corporations are too rare to base an entire market on. The federal and state government must make some sign that they will be willing to pay for these audits.
But the government is a slow moving beast. Any appropriation of funding or new environmental compliance laws will take a lot of effort to pass. Currently, the House of Representatives have a Republican majority, and the Senate a Democratic majority. If congress were solidly blue with a Democrat in the oval office, then the chances of funding would be relatively high. As it stands, it is unlikely that any large amount of money will be appropriated for GHG audits any time soon. State-level government is another option, but requires a considerable amount of political maneuvering and the payouts would not be as high.
Being in an economic recession does not help much either. Unless the GHG auditing industry can convince government officials that funding audits would create a substantial amount of job growth, any pleas for money will likely fall on deaf ears. When the unemployment rate is up and debt is a growing concern, lawmakers typically feel there are more pressing matters than trying to force corporate compliance to environmental sanctions.
However, that is not to say this will always be the case. When the economy moves away from recession and debt is no longer the only thing congress is concerned about, there is a definite opportunity to push for funding. But that scenario is still likely years away, which means many GHG auditing companies may be operating in the red as their client list dries up. Unless the owners and employees of these companies are truly passionate enough about global climate change, the struggle between now and when funding may appear could be too much. The industry is still evolving, techniques are improving, and obsolescence is a serious concern. As such, it may be wise to wait, or just dip a toe into the market, before plunging head first into GHG auditing.
Deborah Sweeney, CEO of MyCorporation Business Services, Inc., is an advocate for protecting personal and business assets for all consumers. She provides insightful commentary on the benefits, barriers, and who should consider incorporation and trademark registration.
