3. MEANING Carbon credits are a key components of national and international emissions trading that have been implemented to mitigate global warming. A generic term to the attempt to mitigate the growth in concentrations of GHG
4. Climate change Rapid Industrial Growth Increased Energy Consumption Increased CO2 and other GHG Emissions Global Warming due to Increased Concentration of GHG Increased changes in wind Changes in Sea Level and Precipitation crop yields
7. CARBON CREDIT 1 CARBON CREDIT ≈ 1 ton of CO2 or its equivalent greenhouse gas (GHG) which is an entitled certificate by UNFCCC (United Nations Framework Convention on Climate Change)
8. How buying carbon credits can reduce emissions? Carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting the air. Emissions become an internal cost of doing business and are visible on the balance sheet alongside raw materials and other liabilities or assets.
9. KYOTO PROTOCOL
10. What is Kyoto Protocol? The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change(UNFCCC) passed on 11 December 1997 in Kyoto, Japan but came in force on 16 February, 2005. Countries that ratify this protocol commit to reduce (a) their emissions of carbon dioxide and (b) five other greenhouse gases, or (c)engage in emissions trading if they maintain or increase emissions of these gases.
11. Features of Kyoto protocol It sets legally binding targets for emissions of 6 major greenhouse gases in industrialised countries and defines a specific time period for reaching those targets. It creates a new commodity (carbon) that can be traded through new international market-based mechanisms. It will facilitate the initials of sustainable development while providing additional support to developing nations to achieve this goal.
15. Cont.……. Joint Implementation: This mechanism allows Annex 1 nations to receive emission credits towards their own emission targets by participating in certain projects with other Annex 1 nations. These Joint Implementation projects must be approved by all nations participating in the project, and must either reduce greenhouse gas emissions or contribute to enhanced greenhouse gas removal through emission sinks (i.e. reforestation).
16. Cont.……. Emissions Trading: This mechanism allows Annex 1 nations to purchase emission ‘credits’ from other Annex 1 countries. Some countries will be below the emission targets assigned to them under the Protocol and, as such, will have spare emission credits. Under the emissions trading system, other nations may purchase these spare credits and use them towards their own emission targets.
17. Exchanges Traded In Chicago Climate Exchange. European Climate Exchange Nord Pool Power Next European Energy Exchange
18. 17 KYOTO Protocol Annex I Non-Annex I Not ratified
19. Non -Annex-1 India Bangladesh Brazil China Afghanistan Algeria Nepal Argentina Bolivia Srilanka Pakistan Malaysia Mauritius Annex I Australia(Not ratified) Austria Belgium Monaco Canada Netherland New zealand United Kingdom Germany Spain Switzerland Greece
