Carbon Credit for Sustainable Development

CARBON CREDIT FOR
SUSTAINABLE DEVELOPMENT
Presented by:-
SHABIN LALU
SNGIST

OVERVIEW
2 CARBON CREDIT FOR SUSTAINABLE DEVELOPMENT
• Introduction
• Sustainable Engineering
• Pillars of sustainable development
• Threats of sustainable development
• GHG emissions
• Carbon
• Carbon dioxide emission
• Kyoto Protocol
• Carbon Credit
• Mechanism for Carbon Credit Trading
• Carbon Footprint
• Benefits of Carbon Credit
• Limitations of Carbon Credit
• Case study
• Conclusions
• References

INTRODUCTION
3
 Sustainability engineering: use energy and resources sustainably.
 Increase temperature in earth due to increase emission of green
house gases.
 Industrialization, combustion of fossil fuels are leads to
formation of GHG.
 ‘Kyoto Protocol’ is an agreement requires that the developed
nations reduce emissions of CO2 and 5 other GHG.
 Carbon Credit is a rescue to reduce emission of GHG.
CARBON CREDIT FOR SUSTAINABLE DEVELOPMENT

SUSTAINABILITY ENGINEERING
4
 Sustainability is a term chosen to bridge between
development and environment.
 It is a process of engg. ,where uses of energy and resources
are made in a sustainable manner.
 Activities are sustainable when we:
 Use materials that can be recycled
 Use Consistent sources of energy

PILLARS OF SUSTAINABLE
DEVELOPMENT
5
 SOCIAL
 ECONOMICAL
 ENVIRONMENTAL

THREATS OF SUSTAINABLE
DEVELOPEMENT
6
 Over Population
 Pollution
 Lack of awareness about sustainability.
 Disagree of political agents

GHG EMISSIONS
7
Global warming potential (GWP) for the 6 GHGs are
summarized below
GWP is a relative measure of the amount of heat trapped by a
GHG in atmosphere

GHG PRESENCE IN WORLD
CARBON CREDIT FOR SUSTAINABLE DEVELOPMENT8

CARBON
9
 Carbon is referred as ‘building block of life’.
 Carbon compounds can exist as :-
 Solids - Diamonds or Coal
 Liquids – crude oil
 Gases – carbon dioxide
 Fossil fuels are burned for energy (combustion)
 Carbon present in the air as CO2 contributes to the ‘Greenhouse
Effect’ consequent ‘global warming’.

CARBON DIOXIDE EMISSION
10
Emission source Approximate CO2 emissions
Automobiles 2.4 kg/litre
Electricity .75 kg/KWh
Recycling practices adopted in solid waste
practises
386 kg/year
Replacing standard bulbs with CFL 18 kg/year
Plant a tree 10 kg/year

PIE DIAGRAM OF CO2 EMISSION
11 CARBON CREDIT FOR SUSTAINABLE DEVELOPMENT

KYOTO PROTOCOL
12
 Kyoto Protocol is an agreement made under the UNFCCC.
 It is adopted in Kyoto, Japan, on 11 December 1997 and
entered into force on 16 February 2005.
 185 parties of the UNFCCC have signed and ratified the
Protocol.

Continues…
13
 Objectives :-
 ‘To stabilize atmospheric concentrations of greenhouse gases at safe
level.’
 The convention divides the countries into 2 groups:
 Annex I parties: developed countries, who have accepted GHG emissions
reduction obligations (Eg: USA).
 Non- Annex I parties: developing countries, , who have no GHG
emissions reduction obligations, but may participate CDM (Eg: INDIA).

CARBON CREDIT
14
 Carbon credit is a permit that allows the holder to emit 1
tonne of CO2.
 The carbon credit system was ratified in concurrence with
the article 17 of Kyoto Protocol.
 One carbon credit is equivalent to reduction of 1 tonne of
CO2 or its equivalent GHG from base line of project
activity.

WORKING
15
A B
 B emit more CO2 than emission cap. So B buys permits from A.
 A emit less CO2 than emission cap. So A sells permits to B. and
financially rewarded.
CARBON CREDIT FOR SUSTAINABLE
DEVELOPMENT

CALCULATION OF CARBON
CREDIT
16
 Each ton of dry tree (biomass) weight = 1 ton of carbon.
 It is estimated that 1 ton carbon produces 3.67 tons of CO2,
if biomass is burned.
 1 ton of CO2 is not released in to the atmosphere = 1
carbon credit

MECHANISM FOR CARBON CREDIT
TRADING
17
Kyoto’s flexible mechanism
Joint
implementation
Clean
development
mechanism
International
emission
trading
•The mechanisms assists the parties meet their emission
reduction targets.

JOINT IMPLEMENTATION (JI)
18
 It is described in Article 6 of the Kyoto Protocol.
 Joint Implementation means transfer of emission reduction
at the project level.
 Here, one Annex I party can invest in a project that reduces
emissions in another Annex I party .
 And receive credit for the emission reductions achieved
through that project.

Continues..

CLEAN DEVELOPMENT
MECHANISM (CDM)
 It was established under Article 12 of the Kyoto Protocol.
 Here, one Annex I party can invest in a project that reduces
emissions in non - Annex I party.
 CDM projects also assist host parties in achieving
sustainable development and in contributing to the ultimate
objective of the convention.

Continues…

INTERNATIONAL EMISSION
TRADING (IET)
 IET as set out in Article 17 of Kyoto Protocol.
 It provide for Annex I parties to acquire emissions units
from other Annex I parties and to use those units towards
meeting a part of their targets.
 Countries can trade in international carbon credit market.
 Countries with surplus credits can sell them to countries
with quantified emission limitation and reduction
commitments under the Kyoto Protocol.

CARBON FOOTPRINT
 Carbon footprint is an expression
that describes how much CO2 a
person emits over his/her lifetime.
 Large carbon footprint has harmful
effect on environment.
 Carbon credit is more by reduce
carbon footprint.

BENEFITS OF CARBON CREDIT
 Reduction in Global warming.
 Better technology.
 Technology transfer.
 Additional source of foreign investment act as a catalyst in
developing cleaner technology.
 Environmental benefits .
 Reduce carbon footprint.

LIMITATIONS OF
CARBON CREDITS
 Chances of fraudulence go up.
 Meaningful offset project is complex.

BENEFIT TO INDIA
 India joined the Kyoto Protocol in August 2002 and it
contributes 25 % of the total world carbon trade.
 The first company to take part in carbon trading was Shree
Pandurang Cooperative Sugar Factory Ltd, Shripur, which
earned Rs. 3.97 crore from the UNFCCC.

CASE STUDY
DELHI METRO RAIL CORPORATION LTD.

Continues…
 DMRC has become first ever railway project in the world to claim
carbon credit.
 They reduce 30% electricity consumption with regenerative breaking
system in its trains.
 DMRC claimed 4 lakh CERs for a 10 year crediting period starting
Dec,2007.
 This converts to 1.2 crore per year for 10 years.
 DMRC so far has helped in removing more than 91 thousand vehicles
from roads on daily basis.

CONCLUSION
 Carbon Credit is an effective tool to earn extra income and
benefits for developing and non developed countries.
 It will reduce emission of GHG and there by improving
environmental stability.
 Carbon Credit greatly contributes towards the fight against
Global warming.
 India is likely to emerge as the biggest sellers and Europe is
going to be the biggest buyers of Carbon Credit.
 It offers green and better world.

REFERENCES
 Gawande A.P, Thakare R.R, Haramkar S.S (2014), “Carbon
Credit: Trading With Nature”, International Journal of Chemical
and Physical Sciences, Vol.3 (2), pp. 10-16.
 Amit Mishra, Ravi Jain, Huma Afrin (2014), “Carbon Credit for
Sustainable Development”, Recent Research in Science and
Technology, Vol.6 (1), pp. 09-13.
 Dr. Meenu Maheshwari, Nidhi Goyal (2015), “Carbon Credit
Accounting : A Case Study of Delhi Metro Rail Corporation”.
Pacific Business Review International, Vol. 8 (3), pp. 113-116.
 www.Wikipedia.org

CARBON CREDIT FOR SUSTAINABLE
DEVELOPMENT31

Carbon Credit for Sustainable Development

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