CARBON CREDIT Prepared by :Jimit.S.Dhruv Elect.Engg. Valiya Institute OfTechnology-Valia.
CONTENTS Introduction to carbon credit. Background. Emission Allowances. Kyotos Flexible Mechanisms .Carbon credit in India. How buying carbon credits can reduceemissions.Criticisms
INTRODUCTION Carbon credits as a key component Use of credits. Carbon credits with compnies Quality of carbon credits.1. Validation process2. Sophitication of the fund Two types of credits1. Carbon offset credits2. Carbon reduction credits One Carbon Credit is equal to one ton of Carbon.
BACKGROUND$• Major sources• Use of causes• The kyoto protocal at KYOTO, JAPAN—December 1997• It came into utilisation in 16FEB 2005• Under that aggrement the industrilised countries reduce their emmision by 5.2% compared to year 1990• The mechanism was formalized in the Kyoto Protocol, an international agreement between more than 170 countries.
EMISSION ALLOWANCES• Emmision done in five year period from 2008-2012 but till now 1. 8% EUROPION UNION 2. 7% UNITED STATES 3. 6% JAPAN 4. 0% RUSSIA 5. 8% AUSTRALIYA 6. 10% ICELAND• Quotas of protocol• Each oprations has an allownces of credit• Application of credit in industries• Since 2005 the kyoto mechanism Has been adopted for co2 trading by all the coutrieswithin the europion union
Kyotos Flexible• mechanisms A credit can be emmision aa• Three Mechnism: 1. JOINT IMPLIMENTATION 2. CLEAN DEVELOPMENT MECHANISM 3. INTERNATIONAL EMMISION TRADING• These carbon projects can be created by a national government or by an operator within the country.
How buying carbon credits can reduce emissionsCarbon credits create a market for reducing greenhouse emissions.By way of exampleAfter this the business may decide that it is uneconomical or infeasible to invest innew machinery for that year .Also consider alternate sources of energy.Although if a factory continues to emit ghg,then it would pay other group.Another seller may have already invested in new low-emission machinery and have asurplus of allowances as a result.
Carbon Credit & India.India comes under the third category at UNFCCC but is leader.Jindal ‘s technology would prevent 15 million tonnes of carbon from beingdischarged into the atmosphere in the coming decade.ie $15/tonne that is a total of $225 million.World Bank had just handed over $10 million to India’s InfrastructureDevelopment Finance Company to fund ‘clean’ projects that would generatesaleable carbon credits.
CriticismsSometimes difficult to manage emissions.The Kyoto mechanism is the only internationally-agreed mechanism forregulating carbon credit activities .Its supporting organisation, the UNFCCC,is the only organisation with a global mandate on the overall effectiveness ofemission control systems. The Kyoto trading period only applies for five years between 2008 and2012.Developed countries get license for emission.Over all machinery increases, so emission of ghg increases.