A Carbon credit is a generic term meaning that a value has been assigned to a reduction or offset of greenhouse gas emissions. Carbon credits and markets are key components of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs)
A brief history of Carbon credits:
Burning of fossil fuels is a major source of industrial greenhouse gas emissions, especially for power, cement, steel, textile, fertilizer and many other industries which rely on fossil fuels (coal, electricity derived from coal, natural gas and oil). The major greenhouse gases emitted by these industries are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons (HFCs), etc, all of which increase the atmosphere's ability to trap infrared energy and thus affect the climate.
The mechanism was formalized in the Kyoto Protocol, an international agreement between more than 170 countries, and the market mechanisms were agreed through the subsequent Marrakesh Accords. The mechanism adopted was similar to the successful US Acid Rain Program to reduce some industrial pollutants.
Carbon credits and their financial role :
Credits represent the right to emit a specific amount of greenhouse gases. Credits can be exchanged between businesses or bought and sold in the international market at the current market price.One tonne of CO2-e should be equivalent to one carbon credit.
Question to ponder over :
- Do you thing that carbon credits could become the largest commodity traded in the world in the coming years?
Some information posted by Ashwini Nagarkatti (T.I.M.E. Powai) on carbon credits : http://storyofstuff.com/capandtrade/
yes ma'am please do post more articles on carbon credits.
ReplyDeleteCarbon trading is already raking in a lot of moolah and the number of countries ratifying the Kyoto protocol has increased. India is one of the leading sellers and it has done a lot of good to our nation in terms of getting eco-savvy and of generating monetary benefits. I do think carbon credits has the potential to become the largest commodity to be traded in the world.
ReplyDeleteMa'am could you please post a few more articles pertaining to this topic
ReplyDeleteplease post an eloborate article on how carbon credits buy and sell mechanism works in india
ReplyDeleteplease post an eloborate article on how carbon credits buy and sell mechanism works in india
ReplyDeletefrnds heres a link to a detailed project on carbon credits. I am working on the same topic as a part of my project work. i ll keep updating as i come across interesting articles on the same topic.
ReplyDeletehttp://www.scribd.com/doc/8746421/Carbon-Credits-Implications-in-India-as-Financing-Instrument-Kalyan-Teja