Detail study on carbon credits.

1. CCAARRBBOONN CCRREEDDIITTSS

2. TTOOPPIICCSS WWEE WWIILLLL TTAALLKK
AABBOOUUTT……
 INTRODUCTION
 CLIMATIC CHANGES
 CO2 EMISSIONS BY INTERNATIONAL COUNTRIES
 WHAT IS CARBON FOOTPRINTS ?
 CARBON CREDITS
 HOW IT CAME INTO BEING?
 KYOTO PROTOCOL
 EMISSION ALLOWANCES
 BUYING CARBON CREDITS
 CARBON TRADING
 SETTING A MARKET PRICE
 INDIVIDUAL CARBON CREDITS
 CASE STUDY
 INDIAN SCENARIO
 TRADERS IN INDIA
 ADVANTAGES AND DISADVANTAGES
• CONCERNS
• FUTURE OUTLOOK
 CONCLUSION

3. CCLLIIMMAATTIICC CCHHAANNGGEESS
INCREASING SEA
INCREASING SEA
LEVEL
LEVEL
CHANGES IN WIND
AND PRECIPITATION
CHANGES IN WIND
AND PRECIPITATION
CHANGES IN
CROP YEILDS
CHANGES IN
CROP YEILDS

5. CCOO22 EEMMIISSSSIIOONNSS BBYY IINNTTEERRNNAATTIIOONNAALL
CCOOUUNNTTRRIIEESS

8. CCAARRBBOONN FFOOOOTTPPRRIINNTT
"A measure of the total amount of carbon dioxide (CO2)
and methane (CH4) emissions of a defined population,
system or activity, considering all relevant sources,
sinks and storage within the spatial and temporal
boundary of the population, system or activity of
interest. Calculated as carbon dioxide equivalent
(CO2e) using the relevant 100-year global warming
potential (GWP100)”

9. DDEEFFIINNIITTIIOONN
A carbon credit is a generic term for any
tradable certificate or permit representing the
right to emit one tonne of carbon dioxide or the
mass of another greenhouse gas with a carbon
dioxide equivalent (tCO2e) equivalent to one
tonne of carbon dioxide.

10. In short…
1 Carbon Credit = 1 ton of carbon dioxide

11. HHOOWW IITT CCAAMMEE IINNTTOO BBEEIINNGG??

12. KKYYOOTTOO PPRROOTTOOCCOOLL

14. EEMMIISSSSIIOONN AALLLLOOWWAANNCCEESS
 An allowance to emit one metric tonne of carbon dioxide
equivalent entered into country’s national registry.
 Operators can sell their unused allowances as carbon
credits.
 Operators needing more carbon credits can buy it
privately or in the open market.

15. BUYING CCAARRBBOONN CCRREEDDIITTSS
AANNDD RREEDDUUCCIINNGG EEMMIISSSSIIOONNSS

16. CCAARRBBOONN TTRRAADDIINNGG
 Carbon trading is an administrative approach used to
control pollution by providing incentives for achieving
reductions in emissions of pollutants.
 Overall goal of an carbon emission trading plan is to
minimize the cost of meeting a set emissions target.

18. SETTING AA MMAARRKKEETT PPRRIICCEE FFOORR
CCAARRBBOONN....
 Optimal carbon price is the market price on carbon
emissions that balance the incremental costs of reducing
carbon emissions with the incremental benefits of reducing
climate change.
 Price of carbon in market is raised. It can achieve four
goals.
 Carbon Credits are traded at CO2 exchange in UK, CDM
exchange in Europe and the Chicago climate exchange.
 Current carbon credit price was Rs 752.5 as traded on
16/3/11.

19. IINNDDIIVVIIDDUUAALL CCAARRBBOONN CCRREEDDIITTSS
 Individual credits for public transport.
 Individuals who exceed their allocation would be able to
purchase additional credits from those who use less.
 Personal carbon trading has been criticized for its high
implementation costs.
 Personal carbon trading would be a progressive policy,
redistributing money from the rich to the poor - as the
rich use more energy than the poor.

20. CCAASSEE SSTTUUDDYY
 A green stealth tax is a tax levied in such a way that is
largely unnoticed, or not recognized as a tax.
 Large public and private sector organizations forces
hospitals, fire brigade, etc. to register for the scheme to
buy the credits for their emissions.
 Crossing the limits of carbon credit leads to heavy
penalization.
 Rewarding credits are awarded for staying within the
prescribed limits.

21. CCAASSEE SSTTUUDDYY
 An efficient mechanism to reduce green house gas
emissions in rural India.
 A proposal of mathematical model based household
biogas plant project for energy self sufficiency in rural
India.
 A research study carried out in 10 villages of Jhunjhunu
district of Rajasthan.
 Main aim was to make the project economically feasible
by earning income from the sales of carbon credits
through the project.

22. IINNDDIIAANN SSCCEENNAARRIIOO
 India comes under a non-annex country.
 According to a report, the total CO2 equivalent emissions in
2007were 1,612,362.00 in thousands of metric tones.
 Prices of carbon products are expected to rise in future to
meet targets.
 There are some major sources of GHG’s emission in India.
Many CDM projects have come up for future.

24. AADDVVAANNTTAAGGEESS AANNDD
DDIISSAADDVVAANNTTAAGGEESS
ADVANTAGES
 Better technologies for the company which is benefiting from
generation of CERs.
 Technology transfer from developed to developing countries
(Due to low cost structure in developing countries).
 Additional source of foreign investment in developing
countries which act as a catalyst in developing cleaner
technologies.
 Channel CDM funds to investment priorities – The CDM funds
can be channelized into building or improving projects, thus
reinvesting it for higher growth.
 Development of cleaner technologies leading to sustainable
development where countries have a strategic advantage
from now in terms of pollution.
 Environmental benefits due to lesser GHG emissions.

25. DISADVANTAGES
 Provision of cheapest way of purchasing climate
destroying right.
 Due to nature and process of complexity involved,
foreign players may dominate domestic industries for
the incentive if CERs.
 CDM investment could affect national development
strategies, possibly adversely affecting national
decision-making processes. Until future commitment
periods are agreed, the CDM may not provide incentives
for financing long-term development projects and
strategies.

26. CCOONNCCEERRNNSS
Projects take approximately 2 years to be
issued.
India is still not counted among the top three
carbon credit nations because of its project
rejection rate.
The projects show shortfall in the techniques
and methodology.

27. FFUUTTUURREE OOUUTTLLOOOOKK
 Carbon reduction targets to be announced by regulatory
bodies.
 Increasing carbon credits demand will lead to increase in
the size of carbon credit market.

28. CCOONNCCLLUUSSIIOONN
The world must take action to cut carbon dioxide
emissions. And this action needs to be reconciled with
increasing energy demand from a rising population and
economic growth.

29. RREEFFEERREENNCCEESS
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30. TTHHAANNKK YYOOUU