17. Emission Trading Developed country A (needs CC) Developed country B Sell these carbon credits Payment for CC Earns carbon credits called Assigned Amount Units
18. Joint Implementation Developed country A (needs CC) Developed country B Sets a project Sell carbon credits Earns carbon credits called Emission Reduction Units
19. Clean Development Mechanism (CDM) Developed country (needs CC) Developing Country Sells carbon credits Sets a project Earns carbon credits called Certified Emission Reduction
20. Concept of VER’s VER Countries not committed to the protocol Voluntary Emission Reduction OR Verified Emission reduction
21. What should be the price of carbon???? At present, price of 1 carbon credit is 10 Euro to 15 Euro
22. Birth of Carbon Credit Growth of Carbon Credit & India’s Position Concern for Chartered Accountants Concept of Carbon Credit
23. Market for Carbon Trading…… Currently there are 5 Environmental Exchanges, trading in Carbon Credits POWER NEXT EUROPEAN CLIMATE EXCHANGE
32. Present Accounting treatment….. Treatment under IFRS Treatment under US GAAPS Treatment under AS IAS 20 (Government grants) currently no guidance note available currently no accounting standard available
33.
34. OR CER Transaction Tax TAX TREATMENT INDIRECT TAX DIRECT TAX Income from CER’s Other Income Business Income Goods Services VAT, etc Service tax
35. However, NO set Accounting or Tax Treatment has yet been decided