SlideShare a Scribd company logo
CARBON CREDITS
Ashish Kumar Ghosh [11312008]
Neelesh Sharma [11110034]
Global Warming
The Earth's average surface
temperature rose by 0.74±0.18 °C over the
period 1906–2005
Source: http://data.giss.nasa.gov/gistemp/graphs/
CO2
Methane
Nitrous Oxide
Hydroflourocarbon
Sulphur Hexaflouride
Perflourocarbon
UNFCCC United Nations Framework
Convention on Climate Change
Earth Summit – Rio de Janeiro June 1992
Objective: “stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent
dangerous anthropogenic interference with the climate system”
May 2011 - 195 parties (all United Nations member states (except South Sudan), as well as Niue, Cook
Islands and the European Union)
• The parties to the convention have met annually from 1995 in Conferences of the Parties (COP) to
assess progress in dealing with climate change.
• In 1997, the Kyoto Protocol was concluded and established legally binding obligations for
developed countries to reduce their greenhouse gas emissions.
• The 2010 Cancún agreements state that future global warming should be limited to below 2.0 °C
(3.6 °F) relative to the pre-industrial level.
• The 20th COP will take place in Peru in 2014
Kyoto Protocol
• The Kyoto Protocol is a legally binding agreement that arose out of the UNFCCC to
tackle climate change through a reduction of green house gas emissions.
• Developed countries (those listed in Annex I) are legally bound to reduce man-made
green house gases emissions by approximately 5.2%
• Individual countries have their own reduction targets outlined in Annex B of the Kyoto
Protocol.
March towards a
green planet
• India signed and ratified the Protocol in August, 2002.
• Since India is exempted from the framework of the treaty,
it is expected to gain from the protocol in terms of transfer
of technology and related foreign investments
• India maintains that the major responsibility of curbing
emission rests with the developed countries, which have
accumulated emissions over a long period of time .
The First Commitment Period
(2008-2012)
Carbon Trading
• Cap and Trade Program
• Carbon Offsetting
A carbon credit is a generic term for any tradable certificate or permit
representing the right to emit one ton of carbon dioxide or the mass of another
greenhouse gas with a carbon dioxide equivalent to one ton of carbon dioxide.
At present, price of 1 carbon credit is 10 Euro to 15 Euro
Cap and Trade
• CAP Assignment of an upper threshold limit on the amount of pollutant that
can be emitted (measured in Assigned Amount Units or AAUs) by a country.
• Emission permits or equivalent number of allowances or credits are issued to
emit a specific amount of carbon dioxide (cap) to the country.
1 credit= 1 ton of carbon dioxide
• TRADE The transfer or trade of allowances
o Excess or unused allowances/credits can be traded to the countries whose emissions
have exceeded their assigned cap.
o The purchased allowances can be used to increase the allowance limit by the
purchasing country.
Countries whose emissions are less than their assigned amount or the
CAP can sell or TRADE the excess amount to countries whose emission have
exceeded their assigned amount.
Carbon Offsetting
• Offset Credits for eco-friendly technologies are purchased by developed nations to
avoid or substitute reduction in their own emission.
• Investments in green technologies and harness alternative forms of energy in the
developing nations.
Carbon Network
Markets for Carbon Trading
POWER NEXT
EUROPEAN CLIMATE
EXCHANGE
Kyoto Mechanisms
• Emissions trading - countries can trade in the international carbon credit market to cover
their shortfall in Assigned amount units. Countries with surplus units can sell them to
countries that are exceeding their emission targets under Annex B of the Kyoto Protocol.
‘assigned amount units’
• Joint implementation (JI) - a developed country with relatively high costs of domestic
greenhouse reduction would set up a project in another developed country.
‘emission reduction unit (ERU)’
• Clean development mechanism (CDM) - a developed country can 'sponsor' a
greenhouse gas reduction project in a developing country where the cost of greenhouse
gas reduction project activities is usually much lower, but the atmospheric effect is
globally equivalent.
o The developed country would be given credits for meeting its emission reduction targets,
o while the developing country would receive the capital investment and clean technology or
beneficial change in land use.
‘certified emission reduction (CER)’
Emission Trading v/s Carbon Taxes
• United States is the strongest proponent of emissions trading as US is energy
inefficient and has high per capita carbon dioxide emissions levels.
• The European Union has been in favor of carbon taxes as the EU is already
relatively energy efficient
• The Russian Federation & the Ukraine are major supporters of emissions trading
• Developing countries are extremely cautious of emissions trading, & view it
primarily as a "loophole" that the US & Japan can use to avoid their domestic
responsibility
Advantages
• Reduction in green house gas emission
o Stringency in the cap or the upper threshold limit is contributing to lower emission
over the years
• Source of revenue for developing nations
o Developing nations can earn revenue by selling carbon credits to countries with
more fossil fuel demand.
• Supports a free market system
o The carbon trade market is without any economic intervention and regulation by
government except to regulate against force or fraud
• Impetus for Alternative sources of energy or green technology
o Threshold limits encourages industries to harness alternative sources of energy and
invest in green technology globally or in indigenous research.
Disadvantages
• Right to pollute
o Industries in the ratified nations are purchasing legal rights to pollute the atmosphere
• Slow process
o Industries are opting the easy way– purchase more allowances than implementing
greener technologies
• Lack of centralized system or global framework
o Absence of a centralized and accepted global standards/act are missing
• No effective carbon reduction in the atmosphere
o Leads to carbon reduction in one place and results in carbon emission in some other
place
Conclusion
• Carbon Trading brings forth financial incentives to reduce carbon dioxide emission
and implement eco-friendly/green technologies.
• Stringent assignment of the caps or the upper threshold limits over the years can
ameliorate the green house gas emission problem.
• The alternative/renewable sources of energy like wind, solar and hydro are
supposed to get financial boost to substitute fossil fuels.
• Absence of a standard measuring technique in carbon sequestration or storage
questions the feasibility of Carbon Offsetting techniques.
• Presently, the market is primarily driven by financial interest or gains by the
investment farms as opposed to seeking environmental remedy.

More Related Content

What's hot

Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
Shruti Nagani
 
Carbon Credit Carbon Trading Future.pptx
Carbon Credit Carbon Trading Future.pptxCarbon Credit Carbon Trading Future.pptx
Carbon Credit Carbon Trading Future.pptx
saurabhdixit625380
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
Mugadha Bane
 
Carbon trading
Carbon tradingCarbon trading
Carbon trading
sonia gupta
 
8 Carbon Trading
8   Carbon Trading8   Carbon Trading
8 Carbon Trading
Dr. Parveen Kaur Nagpal
 
M sc. carbon credit
M sc. carbon creditM sc. carbon credit
M sc. carbon credit
Josef Ak
 
Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
sush_biswas
 
Carbon Markets
Carbon MarketsCarbon Markets
Carbon Markets
Leonardo ENERGY
 
Carbon Credit - Naresh Thakur
Carbon Credit  - Naresh ThakurCarbon Credit  - Naresh Thakur
Carbon Credit - Naresh Thakur
Naresh Thakur
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
Mirza Salman Baig
 
Carbon Credit
Carbon CreditCarbon Credit
Carbon Credit
Samit Kumar Kapat
 
Carbon trading mechanism
Carbon trading mechanism Carbon trading mechanism
Carbon trading mechanism
Shilpa C
 
Carbon trading ( a brief view )
Carbon trading ( a brief view  )Carbon trading ( a brief view  )
Carbon trading ( a brief view )
TheEnggSlides
 
Carbon credit ppt
Carbon credit pptCarbon credit ppt
Carbon credit ppt
Reena Chittora
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
divinekaur
 
Carbon markets and its performance
Carbon markets and its performance Carbon markets and its performance
Carbon markets and its performance
shilpapanginikkode
 
Clean development mechanism basics
Clean development mechanism basicsClean development mechanism basics
Clean development mechanism basics
Zolt Energy
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
jennna
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
Rakhi Vishwakarma
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
Rehan Akhtar
 

What's hot (20)

Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
 
Carbon Credit Carbon Trading Future.pptx
Carbon Credit Carbon Trading Future.pptxCarbon Credit Carbon Trading Future.pptx
Carbon Credit Carbon Trading Future.pptx
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
 
Carbon trading
Carbon tradingCarbon trading
Carbon trading
 
8 Carbon Trading
8   Carbon Trading8   Carbon Trading
8 Carbon Trading
 
M sc. carbon credit
M sc. carbon creditM sc. carbon credit
M sc. carbon credit
 
Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
 
Carbon Markets
Carbon MarketsCarbon Markets
Carbon Markets
 
Carbon Credit - Naresh Thakur
Carbon Credit  - Naresh ThakurCarbon Credit  - Naresh Thakur
Carbon Credit - Naresh Thakur
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
 
Carbon Credit
Carbon CreditCarbon Credit
Carbon Credit
 
Carbon trading mechanism
Carbon trading mechanism Carbon trading mechanism
Carbon trading mechanism
 
Carbon trading ( a brief view )
Carbon trading ( a brief view  )Carbon trading ( a brief view  )
Carbon trading ( a brief view )
 
Carbon credit ppt
Carbon credit pptCarbon credit ppt
Carbon credit ppt
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
 
Carbon markets and its performance
Carbon markets and its performance Carbon markets and its performance
Carbon markets and its performance
 
Clean development mechanism basics
Clean development mechanism basicsClean development mechanism basics
Clean development mechanism basics
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
 

Similar to Carbon credits

Soniii
SoniiiSoniii
Soniii
sonia gupta
 
Carbon credit & Carbon footprint.pptx
Carbon credit & Carbon footprint.pptxCarbon credit & Carbon footprint.pptx
Carbon credit & Carbon footprint.pptx
ArchanaBalikram1
 
Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
anirban_sarkar
 
Emerging Trends in Environmental Management
Emerging Trends in Environmental ManagementEmerging Trends in Environmental Management
Emerging Trends in Environmental Management
GAURAV. H .TANDON
 
Presentaion on carbon credits and kyoto protocol
Presentaion on carbon credits and kyoto protocolPresentaion on carbon credits and kyoto protocol
Presentaion on carbon credits and kyoto protocol
Ankit Agrawal
 
Krishna Dahre presentation 3.pptx
Krishna Dahre presentation 3.pptxKrishna Dahre presentation 3.pptx
Krishna Dahre presentation 3.pptx
KrishnaDahre
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
Himanshu Goyal
 
Elisha Attia Logtel CARBON CREDIT
Elisha Attia Logtel CARBON CREDITElisha Attia Logtel CARBON CREDIT
Elisha Attia Logtel CARBON CREDIT
Elysée (Elisha) Attia
 
Kyoto protocol
Kyoto protocolKyoto protocol
Kyoto protocol
AvantikaBadgujar
 
Kyoto protocol
Kyoto protocolKyoto protocol
Kyoto protocol
Justin Baby
 
Cop 21
Cop 21Cop 21
Cs presentation mj april 5th 2013
Cs presentation   mj april 5th 2013Cs presentation   mj april 5th 2013
Cs presentation mj april 5th 2013
Madeleine Allcock
 
Module 7.pptx
Module 7.pptxModule 7.pptx
Module 7.pptx
BinitKumar67
 
CDM
CDMCDM
Kyoto Protocol Short Presentation
Kyoto Protocol Short Presentation Kyoto Protocol Short Presentation
Kyoto Protocol Short Presentation
PradeepNagulapalli4
 
7. Responses To Climate Change
7. Responses To Climate Change7. Responses To Climate Change
7. Responses To Climate Change
tudorgeog
 
Carbon Credits
Carbon CreditsCarbon Credits
Carbon Credits
Dayasagar S
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
Mohan2209
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
Mohan2209
 
Kyoto protocol
Kyoto protocol Kyoto protocol
Kyoto protocol
Khairunnisa' Mohammad
 

Similar to Carbon credits (20)

Soniii
SoniiiSoniii
Soniii
 
Carbon credit & Carbon footprint.pptx
Carbon credit & Carbon footprint.pptxCarbon credit & Carbon footprint.pptx
Carbon credit & Carbon footprint.pptx
 
Carbon Trading
Carbon TradingCarbon Trading
Carbon Trading
 
Emerging Trends in Environmental Management
Emerging Trends in Environmental ManagementEmerging Trends in Environmental Management
Emerging Trends in Environmental Management
 
Presentaion on carbon credits and kyoto protocol
Presentaion on carbon credits and kyoto protocolPresentaion on carbon credits and kyoto protocol
Presentaion on carbon credits and kyoto protocol
 
Krishna Dahre presentation 3.pptx
Krishna Dahre presentation 3.pptxKrishna Dahre presentation 3.pptx
Krishna Dahre presentation 3.pptx
 
Carbon credits
Carbon creditsCarbon credits
Carbon credits
 
Elisha Attia Logtel CARBON CREDIT
Elisha Attia Logtel CARBON CREDITElisha Attia Logtel CARBON CREDIT
Elisha Attia Logtel CARBON CREDIT
 
Kyoto protocol
Kyoto protocolKyoto protocol
Kyoto protocol
 
Kyoto protocol
Kyoto protocolKyoto protocol
Kyoto protocol
 
Cop 21
Cop 21Cop 21
Cop 21
 
Cs presentation mj april 5th 2013
Cs presentation   mj april 5th 2013Cs presentation   mj april 5th 2013
Cs presentation mj april 5th 2013
 
Module 7.pptx
Module 7.pptxModule 7.pptx
Module 7.pptx
 
CDM
CDMCDM
CDM
 
Kyoto Protocol Short Presentation
Kyoto Protocol Short Presentation Kyoto Protocol Short Presentation
Kyoto Protocol Short Presentation
 
7. Responses To Climate Change
7. Responses To Climate Change7. Responses To Climate Change
7. Responses To Climate Change
 
Carbon Credits
Carbon CreditsCarbon Credits
Carbon Credits
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
 
Carbon credit
Carbon creditCarbon credit
Carbon credit
 
Kyoto protocol
Kyoto protocol Kyoto protocol
Kyoto protocol
 

Recently uploaded

How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17
Celine George
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
Celine George
 
PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
Dr. Shivangi Singh Parihar
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
Dr. Mulla Adam Ali
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
paigestewart1632
 
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptxPengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Fajar Baskoro
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
eBook.com.bd (প্রয়োজনীয় বাংলা বই)
 
DRUGS AND ITS classification slide share
DRUGS AND ITS classification slide shareDRUGS AND ITS classification slide share
DRUGS AND ITS classification slide share
taiba qazi
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
RitikBhardwaj56
 
How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
Celine George
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
chanes7
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
Jean Carlos Nunes Paixão
 
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPLAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
RAHUL
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Dr. Vinod Kumar Kanvaria
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
heathfieldcps1
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
Colégio Santa Teresinha
 
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School DistrictPride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
David Douglas School District
 
Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
adhitya5119
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
mulvey2
 

Recently uploaded (20)

How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
 
PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
 
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptxPengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
 
DRUGS AND ITS classification slide share
DRUGS AND ITS classification slide shareDRUGS AND ITS classification slide share
DRUGS AND ITS classification slide share
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
 
How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
 
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPLAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
 
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School DistrictPride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
 
Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
 

Carbon credits

  • 1. CARBON CREDITS Ashish Kumar Ghosh [11312008] Neelesh Sharma [11110034]
  • 2. Global Warming The Earth's average surface temperature rose by 0.74±0.18 °C over the period 1906–2005 Source: http://data.giss.nasa.gov/gistemp/graphs/ CO2 Methane Nitrous Oxide Hydroflourocarbon Sulphur Hexaflouride Perflourocarbon
  • 3.
  • 4. UNFCCC United Nations Framework Convention on Climate Change Earth Summit – Rio de Janeiro June 1992 Objective: “stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system” May 2011 - 195 parties (all United Nations member states (except South Sudan), as well as Niue, Cook Islands and the European Union) • The parties to the convention have met annually from 1995 in Conferences of the Parties (COP) to assess progress in dealing with climate change. • In 1997, the Kyoto Protocol was concluded and established legally binding obligations for developed countries to reduce their greenhouse gas emissions. • The 2010 Cancún agreements state that future global warming should be limited to below 2.0 °C (3.6 °F) relative to the pre-industrial level. • The 20th COP will take place in Peru in 2014
  • 5. Kyoto Protocol • The Kyoto Protocol is a legally binding agreement that arose out of the UNFCCC to tackle climate change through a reduction of green house gas emissions. • Developed countries (those listed in Annex I) are legally bound to reduce man-made green house gases emissions by approximately 5.2% • Individual countries have their own reduction targets outlined in Annex B of the Kyoto Protocol. March towards a green planet • India signed and ratified the Protocol in August, 2002. • Since India is exempted from the framework of the treaty, it is expected to gain from the protocol in terms of transfer of technology and related foreign investments • India maintains that the major responsibility of curbing emission rests with the developed countries, which have accumulated emissions over a long period of time . The First Commitment Period (2008-2012)
  • 6. Carbon Trading • Cap and Trade Program • Carbon Offsetting A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one ton of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent to one ton of carbon dioxide. At present, price of 1 carbon credit is 10 Euro to 15 Euro
  • 7. Cap and Trade • CAP Assignment of an upper threshold limit on the amount of pollutant that can be emitted (measured in Assigned Amount Units or AAUs) by a country. • Emission permits or equivalent number of allowances or credits are issued to emit a specific amount of carbon dioxide (cap) to the country. 1 credit= 1 ton of carbon dioxide • TRADE The transfer or trade of allowances o Excess or unused allowances/credits can be traded to the countries whose emissions have exceeded their assigned cap. o The purchased allowances can be used to increase the allowance limit by the purchasing country. Countries whose emissions are less than their assigned amount or the CAP can sell or TRADE the excess amount to countries whose emission have exceeded their assigned amount.
  • 8. Carbon Offsetting • Offset Credits for eco-friendly technologies are purchased by developed nations to avoid or substitute reduction in their own emission. • Investments in green technologies and harness alternative forms of energy in the developing nations.
  • 10. Markets for Carbon Trading POWER NEXT EUROPEAN CLIMATE EXCHANGE
  • 11. Kyoto Mechanisms • Emissions trading - countries can trade in the international carbon credit market to cover their shortfall in Assigned amount units. Countries with surplus units can sell them to countries that are exceeding their emission targets under Annex B of the Kyoto Protocol. ‘assigned amount units’ • Joint implementation (JI) - a developed country with relatively high costs of domestic greenhouse reduction would set up a project in another developed country. ‘emission reduction unit (ERU)’ • Clean development mechanism (CDM) - a developed country can 'sponsor' a greenhouse gas reduction project in a developing country where the cost of greenhouse gas reduction project activities is usually much lower, but the atmospheric effect is globally equivalent. o The developed country would be given credits for meeting its emission reduction targets, o while the developing country would receive the capital investment and clean technology or beneficial change in land use. ‘certified emission reduction (CER)’
  • 12. Emission Trading v/s Carbon Taxes • United States is the strongest proponent of emissions trading as US is energy inefficient and has high per capita carbon dioxide emissions levels. • The European Union has been in favor of carbon taxes as the EU is already relatively energy efficient • The Russian Federation & the Ukraine are major supporters of emissions trading • Developing countries are extremely cautious of emissions trading, & view it primarily as a "loophole" that the US & Japan can use to avoid their domestic responsibility
  • 13.
  • 14. Advantages • Reduction in green house gas emission o Stringency in the cap or the upper threshold limit is contributing to lower emission over the years • Source of revenue for developing nations o Developing nations can earn revenue by selling carbon credits to countries with more fossil fuel demand. • Supports a free market system o The carbon trade market is without any economic intervention and regulation by government except to regulate against force or fraud • Impetus for Alternative sources of energy or green technology o Threshold limits encourages industries to harness alternative sources of energy and invest in green technology globally or in indigenous research.
  • 15. Disadvantages • Right to pollute o Industries in the ratified nations are purchasing legal rights to pollute the atmosphere • Slow process o Industries are opting the easy way– purchase more allowances than implementing greener technologies • Lack of centralized system or global framework o Absence of a centralized and accepted global standards/act are missing • No effective carbon reduction in the atmosphere o Leads to carbon reduction in one place and results in carbon emission in some other place
  • 16. Conclusion • Carbon Trading brings forth financial incentives to reduce carbon dioxide emission and implement eco-friendly/green technologies. • Stringent assignment of the caps or the upper threshold limits over the years can ameliorate the green house gas emission problem. • The alternative/renewable sources of energy like wind, solar and hydro are supposed to get financial boost to substitute fossil fuels. • Absence of a standard measuring technique in carbon sequestration or storage questions the feasibility of Carbon Offsetting techniques. • Presently, the market is primarily driven by financial interest or gains by the investment farms as opposed to seeking environmental remedy.