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    Carbon Credits Are A Key Component of National and International Attempts To Mitigate The Growth in Concentrations of Greenhouse Gases

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    Tushar Mishra
    Carbon credits are used in national and international attempts to mitigate greenhouse gas emissions. One carbon credit equals one ton of carbon dioxide or its equivalent. Carbon trading programs cap emissions and use markets to allocate allowances among regulated groups. This allows market forces to incentivize lower emission approaches. Carbon offset projects generate credits that can finance reduction schemes globally on a voluntary basis. The quality of credits depends on the validation process and experience of the sponsoring organization.

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    Carbon Credits Are A Key Component of National and International Attempts To Mitigate The Growth in Concentrations of Greenhouse Gases

    Uploaded by

    Tushar Mishra
    20 views2 pages
    Carbon credits are used in national and international attempts to mitigate greenhouse gas emissions. One carbon credit equals one ton of carbon dioxide or its equivalent. Carbon trading programs cap emissions and use markets to allocate allowances among regulated groups. This allows market forces to incentivize lower emission approaches. Carbon offset projects generate credits that can finance reduction schemes globally on a voluntary basis. The quality of credits depends on the validation process and experience of the sponsoring organization.

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    Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of greenhouse gases

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    Carbon credits are used in national and international attempts to mitigate greenhouse gas emissions. One carbon credit equals one ton of carbon dioxide or its equivalent. Carbon trading programs cap emissions and use markets to allocate allowances among regulated groups. This allows market forces to incentivize lower emission approaches. Carbon offset projects generate credits that can finance reduction schemes globally on a voluntary basis. The quality of credits depends on the validation process and experience of the sponsoring organization.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views2 pages

    Carbon Credits Are A Key Component of National and International Attempts To Mitigate The Growth in Concentrations of Greenhouse Gases

    Uploaded by

    Tushar Mishra
    Carbon credits are used in national and international attempts to mitigate greenhouse gas emissions. One carbon credit equals one ton of carbon dioxide or its equivalent. Carbon trading programs cap emissions and use markets to allocate allowances among regulated groups. This allows market forces to incentivize lower emission approaches. Carbon offset projects generate credits that can finance reduction schemes globally on a voluntary basis. The quality of credits depends on the validation process and experience of the sponsoring organization.

    Copyright:

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    Carbon credits are a key component of national and international attempts to mitigate the

    growth in concentrations of greenhouse gases (GHGs). One carbon credit is equal to one ton of
    carbon dioxide, or in some markets, carbon dioxide equivalent gases. Carbon trading is an
    application of an emissions trading approach. Greenhouse gas emissions are capped and then
    markets are used to allocate the emissions among the group of regulated sources. 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.

    There are also many companies that sell carbon credits to commercial and individual customers
    who are interested in lowering their carbon footprint on a voluntary basis. These carbon
    offsetters purchase the credits from an investment fund or a carbon development company that
    has aggregated the credits from individual projects. The quality of the credits is based in part on
    the validation process and sophistication of the fund or development company that acted as the
    sponsor to the carbon project. This is reflected in their price; voluntary units typically have less
    value than the units sold through the rigorously-validated Clean Development Mechanism

    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 concept of carbon credits came into existence as a result of increasing awareness of the need
    for controlling emissions. The IPCC (Intergovernmental Panel on Climate Change) has
    observed[2] that:

    Policies that provide a real or implicit price of carbon could create incentives for producers and
    consumers to significantly invest in low-GHG products, technologies and processes. Such policies could
    include economic instruments, government funding and regulation,

    while noting that a tradable permit system is one of the policy instruments that has been shown
    to be environmentally effective in the industrial sector, as long as there are reasonable levels of
    predictability over the initial allocation mechanism and long-term price.

    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.

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