Carbon Bar
What is a carbon credit?
In short, you pay money to the account for each tonne of carbon dioxide, or one of the other five pollutants common environmental think. 'You' can refer to individuals, corporations or political entities. So say, for example, generate 10 tons of dioxide of carbon per year, and each carbon credit costs $ 20 per ton. I would have to pay $ 200 for being carbon neutral, which means, I'm paying a fee for each ton of greenhouse gases they produce and this fee contributes to the products or carbon sequestration, or invest in green energy projects. In short, I produce 10 tons of carbon and pay me for ten tonnes removed from our atmosphere.
The Kyoto Protocol was initiated by the United Nations Framework Convention Climate Change and ratified (agreed in principle) by 181 countries and the European Union as a whole entity, individual in 1997 and came into force in 2005. This protocol was proposed by the international community to address and reduce emissions of greenhouse gases that have led to global climate change. Member countries are placed in different categories, Annex I countries make up the industrialized nations. Annex II countries are developed countries that provide financial support developing countries. Annex II The group consists of countries that are members of the Organization for Economic Cooperation and Development.
The third and final category makes developing nations, which have no limitations on emissions of greenhouse gases as a byproduct of emissions are essential to building an economy stable and nurturing of its citizens from poverty. Once these countries become "developed" that are then subject to caps greenhouse Annex I and II countries currently have. Many countries are in Annexes I and II countries. The allowable emissions for member countries have 6 to 8% below their 1990 levels, ie, the limit is different for each member country, taking into account that developing nations are exempt from limits for emissions and have no right to sell carbon credits.
It depends on each country to regulate their industrial outputs to meet 1990 levels of emissions. Although the Kyoto meeting was one of many meetings that took place in the COP (COP), is best known because it is the conference that made countries legally liable for exceeding allowable greenhouse emissions. The Kyoto Accord is the teeth of the United Nations Framework Convention on Climate Change and therefore stands to increase global awareness of climate change.
Typically, companies that explore, produce and promote sources alternative energy such as wind, solar and geothermal energy sell carbon credits. Other organizations with available carbon credits include companies that destroy carbon dioxide or other greenhouse gases directly. Carbon dioxide sequestration is the process of converting CO2 gas to a solid form by chemical or physical. For example, carbon dioxide combined with quick lime oxide calcium () forms limestone that can be used in projects construction.
The Clean Development Mechanism is a governing set of rules established by the Kyoto Protocol to determine which companies and projects can generate carbon credits.
This is necessary because anyone who believes a company can promise that they were developing / using / investing in alternative sources of energy, start selling carbon credits and make out like bandits while doing nothing to stop climate change. The CDM is not the only regulatory body to certify carbon credits, but are best known. If you are buying a carbon credit CDM certfied, you know that you are investing in a company has been thoroughly investigated and approved by the UN.
The certification of carbon credits from other agencies include the Chicago Climate Exchange, Climate Initiative the West and the Regional Initiative Greenhouse Gases in the northeastern U.S. In addition, there are various standards bodies that set the bar for carbon emissions, as the Chicago Climate Exchange, Voluntary Carbon Standard and the CDM Gold Standard (based on the Kyoto Protocol).
The key to the establishment the generation of carbon credits is the concept of additionality. This principle is that a carbon credit is not really beneficial to the environment unless the producer carbon credits have not been able to reduce emissions or invest in the development of renewable energy sources without the money we give them carbon credits. This avoids giving money to organizations that would be doing the same activity without regard to exact revenue from carbon credits. In short, the money your company earns carbon credits should be subject to the reduction of greenhouse gases further initiatives. Who makes the decision about additionality? The CDM board has established a set of guidelnes by certifying a company for selling carbon credits.
About the Author
James Nash is a climate scientist with Greatest Planet (www.greatestplanet.org). Greatest Planet is a non-profit environmental organization specialising in carbon offset investments.
James Nash is solely responsible for the contents of this article.
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