27.2.10

Carbon Credits - The Carrot for low Carbon emission

Carbon trading is a system whereby greenhouse gas emissions are limited under the Kyoto Protocol, and these caps are then allocated throughout the world market in such a way as to promote lower emissions or lessen release of carbon dioxide and other greenhouse gases.

Carbon credits are allocated to industrial units and governments across the globe, which authorizes the owner to discharge a limited amount of CO2 and other greenhouse gases into the atmosphere. One carbon credit amounts to the emission of one ton of carbon dioxide. This essentially entails that high-emission industries can buy carbon credits from low-emission organizations, thereby keeping the net global emissions within the stipulated cap.

Open buying and selling of carbon credits on stock exchanges allows greener energy and process usage of an organization to be incentivised and capitalized, whether the organization is a small one or a big one. Trade in carbon credits gets instant and substantial benefits for organizations with low emissions. Moreover, as the whole idea has also been expanded to countries, there would always be incentives to reduce emissions from the respective governments to local businesses, which is a great advantage as many governments are many times blamed for lack of initiative on environment.

So far carbon trading has been most successful as a method and within a short span has been able to successfully address the issue of high carbon emissions. The carbon trading business has seen remarkable growth in the last few years, and this evidences beyond doubt that the system is impactful.

More: http://bit.ly/9Rs66y


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Anonymous Anonymous said...

Carbon Credits-carrot for low carbon emission
1. The goal is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive approaches than those used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere. Since GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world.
http://en.wikipedia.org/wiki/Carbon_credit

March 05, 2010  
Blogger miafr said...

India and China are likely to emerge as the biggest sellers and Europe is going to be the biggest buyers of carbon credits.

Last year global carbon credit trading was estimated at $5 billion, with India's contribution at around $1 billion. India is one of the countries that have 'credits' for emitting less carbon. India and China have surplus credit to offer to countries that have a deficit.

India has generated some 30 million carbon credits and has roughly another 140 million to push into the world market. Waste disposal units, plantation companies, chemical plants and municipal corporations can sell the carbon credits and make money.

Carbon, like any other commodity, has begun to be traded on India's Multi Commodity Exchange since last fortnight. MCX has become first exchange in Asia to trade carbon credits.

http://www.rediff.com/money/2008/feb/05inter1.htm

March 05, 2010  
Anonymous Anonymous said...

3 Sen. Ross Romero said several Utah communities already take advantage of the opportunity to generate revenue from carbon credits, but his bill would add "legislative clarity" to current law.
http://www.deseretnews.com/article/700013514/Utah-Legislature-Carbon-credit-bill-clears-committee-hurdle.html

March 05, 2010  

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