Carbon Credits
Carbon Credits
Carbon Credits
Introduction
What are GHG’s?
What is Carbon Trading?
Why are GHG’s traded?
What are UNFCCC and Kyoto Protocol?
What is CDM?
What is CER?
What are Emission Allowances?
GHG’s regulated by KP
Carbon dioxide Equivalents (CO2e)
Highlights:
USA: Biggest Emitter
Australia changed position
The EU and Japan ratified it: Biggest Buyers
Kyoto Mechanism
The Clean Development Mechanism (CDM)
Earn and Trade
Covers developing countries
CERs
Project Based
Projects are funded, conceptualized by
companies in developed countries and
implemented in developing countries or
financially more viable countries
Is covered by CDM and JI.
Trading in Theory
Tradable products under
UNFCCC
Comparison between EUA, ERU
and CER
Allowances v/s Credits
Contd…
Source:
www.unfccc.int
No. of Projects (By country)
Inferences
India has 32.42% of total projects but
generates 14.37% of total CERs
Lack of liquidity