Carbon Credit 01

ROUGH
PRESENTATION
ON
CARBON CREDIT
 What does Carbon Credit mean?
 Example
 What is Carbon Trade?
 How buying carbon credits can reduce emissions:
 How does it work in real life?
 Ten Things You Can Do To Help Curb Carbon Credit
CARBON CREDIT
What does Carbon Credit mean?
A permit that allows the holder to emit one ton of carbon
dioxide; Credits are awarded to countries or groups that
have reduced their green house gases below their
emission quota.
Its goal is to stop the increase of carbon dioxide

emissions. The Kyoto Protocol presents nations with the
challenge of reducing greenhouse gases and storing
more carbon. A nation that finds it hard to meet its target
of reducing GHG could pay another nation to reduce
emissions by an appropriate quantity. The carbon credit
system was ratified in conjunction with the Kyoto
Protocol.
example
For example, if an environmentalist group plants enough

trees to reduce emissions by one ton, the group will be
awarded a credit. If a steel producer has an emissions
quota of 10 tons, but is expecting to produce 11 tons, it
could purchase this carbon credit from the
environmental group. The carbon credit system looks to
reduce emissions by having countries honor their
emission quotas and offer incentives for being below
them.
WHAT IS CARBON
TRADE?
An idea presented in response to the Kyoto
Protocol that involves the trading of greenhouse
gas (GHG) emission rights between nations.
For example, if Country X exceeds its capacity
of GHG and Country Y has a surplus of capacity,
a monetary agreement could be made that would
see Country X pay Country Y for the right to use
its surplus capacity.
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.
HOW DOES IT WORK IN REAL
LIFE?
Assume that British Petroleum is running a plant in the

United Kingdom. Say, that it is emitting more gases than
the accepted norms of the UNFCCC. It can tie up with its
own subsidiary in, say, India or China under the Clean
Development Mechanism. It can buy the 'carbon credit'
by making Indian or Chinese plant more eco-savvy with
the help of technology transfer. It can tie up with any
other company like Indian Oil , or anybody else, in the
open market.
 In December 2008, an audit will be done of
their efforts to reduce gases and their actual level
of emission. China and India are ensuring that
new technologies for energy savings are adopted
so that they become entitled for more carbon
credits. They are selling their credits to their
counterparts in Europe. This is how a market for
carbon credit is created.
 Every year European companies are required
to meet certain norms, beginning 2008. By 2012,
they will achieve the required standard of carbon
emission. So, in the coming five years there will
be a lot of carbon credit deals.
TEN THINGS YOU CAN DO TO
HELP CURB CARBON CREDIT
1.Drive Smart!
A well-tuned car with properly inflated tires burns less gasoline—
cutting pollution and saving you money at the pump. If you have two
cars, drive the one with better gas mileage whenever possible. Better
yet, skip the drive and take public transit, walk, or bicycle when you
can.
2.Buy Local and Organic
Did you know the average American meal travels more than 1,500
miles from the farm to your plate? Think of all the energy wasted and
pollution added to the atmosphere not mention all the pesticides
and chemicals used to grow most produce! So go to your local organic
farmer to get your fruits and veggies.
3.Support clean, renewable energy.
Renewable energy solutions, such as wind and solar power, can
reduce our reliance on coal-burning power plants, the largest source
of global warming pollution in the United States. Call your local utility
and sign up for renewable energy. If they don't offer it, ask them
why not?
Also, support a national renewable electricity standard (RES). The

Energy Bill signed in 2007 lacked key components that address our
energy security and global warming emissions: a renewable
electricity standard of 15 percent by 2020 and a tax package that will
provide investment incentives for clean energy alternatives.
4.Replace incandescent light bulbs with compact fluorescent

bulbs.
Especially those that burn the longest each day. Compact
fluorescents produce the same amount of light as normal bulbs, but
use about a quarter of the electricity and last ten times as long. Each
switch you make helps clean the air today, curb global warming, and
save you money on your electricity bill.
5.Saving energy at home is good for the environment and for
your wallet.
Start with caulking and weather-stripping on doorways and windows.
Then adjust your thermostat and start saving. For each degree you
lower your thermostat in the winter, you can cut your energy bills by
three percent. Finally, ask your utility company to do a free energy
audit of your home to show you how to save even more money.
6.Become a smart water consumer.

Install low-flow showerheads and faucets and you'll use half the
water without decreasing performance. Then turn your hot water
heater down to 120°F and see hot-water costs go down by as much
as 50 percent.
7.Buy energy-efficient electronics and appliances.

Replacing an old refrigerator or an air conditioner with an energy-
efficient model will save you money on your electricity bill and cut
global warming pollution
8.Plant a Tree, protect a forest.
Protecting forests is a big step on the road to curbing
global warming. Trees "breathe in" carbon dioxide, but
slash-and-burn farming practices, intensive livestock
production, and logging have destroyed 90 percent of the
native forests . And you can take action in your own
backyard—planting shade trees around your house will
absorb CO2, and slash your summer air-conditioning bills.
9.Reduce! Reuse! Recycle!

Producing new paper, glass, and metal products from
recycled materials saves 70 to 90 percent of the energy
and pollution, including CO2, that would result if the
product came from virgin materials. Recycling a stack of
newspapers only four feet high will save a good-sized
tree. Please... buy recycled products!
10.Mount a local campaign against CARBON CREDIT
Educate your community about how it can cut carbon credit. Support
measures at the national, state, and local level that:
•Make automobiles go further on a gallon of gas;
•Accelerate the use of clean, renewable energy sources,
such as solar and wind;
•Increase energy efficiency and conservation; and
•Preserve forests around the world.

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ROUGH

Its goal is to stop the increase of carbon dioxide

For example, if an environmentalist group plants enough

Assume that British Petroleum is running a plant in the

Also, support a national renewable electricity standard (RES). The

4.Replace incandescent light bulbs with compact fluorescent

6.Become a smart water consumer.

7.Buy energy-efficient electronics and appliances.

9.Reduce! Reuse! Recycle!

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