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Eden Tree is a main maker and merchant of top of the line new vegetables, products of the soil in Ghana. Our central goal is to advance good dieting propensities in the nation by delivering, bundling, and providing astounding vegetables, organic products, and herbs to the Ghanaian market.
Since the organization's fuse in 1997, our reasoning has dependably been the same: quality and perfection at all cost. We develop our items with both the customer's wellbeing and security and natural supportability in our brain. Our items originated from our own particular homesteads in the Volta and Eastern areas of Ghana and from a novel rundown of extraordinarily prepared out cultivators. We join our 19 years of involvement with the ability of driving neighborhood and global sustenance and agribusiness specialists to guarantee that our items are developed in strict consistence with universal nourishment security principles. We are pleased to have some of our items 'Ghana Green Label' guaranteed, which implies that they are delivered in view of sustenance security and natural supportability.
Our resolute endeavors to continually advance and supply superb items available with negligible intrusion has made us a most loved among sustenance retailers and buyers. Today, we supply more than 80 vegetables, natural products, and herbs related items to a client base running from real sustenance retailers and lodgings in Ghana to eateries and individual shoppers. We offer high caliber and quick conveyance administrations on account of our vans and enthusiastic drivers.
With a quickly developing economy and a rising center pay class, the effectively rising interest for solid sustenance in Ghana won't back off at any point in the near future. And with the help of the Eden projects the eden tree hopes to conitune this rise. At Eden Tree, we don't see this developing interest as a straightforward open door for working together and topping off our pockets. We consider it to be an extraordinary obligation to help manufacture a country with more beneficial individuals; a country where adhering to a good diet propensities wind up plainly implanted in the way of life as Ghana moves from a creating to a really rising nation.
We this as a top priority, we consider it to be our duty to educate shoppers of where our items are originating from and the conditions in which they are created
Green mark affirmation
"The Ghana Green Label Scheme is gone for advancing safe nourishment creation, postharvest taking care of and conveyance utilizing great and ecologically feasible farming practices. Ranchers, transporters, and dealers (discount and retail) subscribing to this Scheme must actualize such practices.
The accreditation plot is demonstrated to confirm ranches that consent to the essential creation and dissemination frameworks that guarantee that wellbeing and ecological maintainability are not traded off until the point when deliver achieves the purchaser. The usage of this plan ought to encourage the possible move of the Ghanaian plant industry to practical farming. While the Ghana Green Label conspire focuses on the household advertise, it is relied upon to fill in as a passage point for neighborhood ranchers to get to the universal market".
Some of Eden Tree agriculturists are Green Label Certified and the rest will be experiencing the correct preparing procedure to get guaranteed.
Why should a business consider carbon offsetting?
2010 was another poor year for weather in the most of European countries and hence the allure of foreign sun reared its ugly head once again. Friends of mine went to Cornwall in summer and it rained all week and that the problem with European countries holidays the weather is just so unpredictable.
While looking for flights abroad all the major airlines now offer the facility to offset your carbon for an additional tree and this money is then used to plant tress or increase renewable energy in other parts of the European countries .
Before this facility was available you booked your holiday and flights without guilt but now that the option is there then you are faced with confessing you are going to add to climate change and greenhouse gases by booking but by paying a few pounds you can be absolved of all green house gas sins by investing in green companies.
Some big polluting industries are investing in cleaner technology to reduce damaging emissions but many are buying carbon credits and certificates from other companies to offset the amount of emission they produce. For example company A has a target of producing less than 500 tons per year of CO2 but actually produces 300 tons due to the cleaner technology it uses. Company B has a target of less than 700 tons but produces 800 of CO2 emissions so what it does is buy 100 tonne certificate from Company A to offset there higher figure thereby offsetting their carbon into the environment.
Most people are happy to informed via the media that greenhouse emissions are reducing via these industries are keeping within their pollution targets but its only once you look into these matters more closely do you realize that its like the terms and conditions of your payment protection insurance, in other words the terms and conditions and nothing like it says on the tin so to speak.
Individuals and companies are making millions from selling offset carbon credits but no one is actually monitoring this monitoring which leads me to believe that maybe the green wash and green spin on this is hiding the real truth of very little difference apart from those making good money from it. I would imagine its mainly banker or now ex bankers using the contacts and experience of trading to reap more money from the poor public.
Buying these credits is just plain maths when it comes to keeping the public happy and their profits up. Why invest in cleaner, greener technology when you can buy carbon credits for a cheaper cost.
What we all need to do is to try and reduce our own carbon footprint before asking big business to do so. If we are not willing to fly less, drive less, eat less meat and stop buying so many unrecycable products then why should we expect a business to any different? The power of change from a billion people in the world would improve the environment and more likely make people as happier because instead of the pursuit of profit it would be in the pursuit of happiness and you know how that film turned out dont you?
Where do carbon credits come from?
Carbon credit is a tradable commodity for businesses all over the globe. International trade of carbon credit was created to help reduce the cumulative yearly footprint created by certain types of business practices. This system of "green" currency was designed to give companies a little time to adjust their practices toward more environmentally friendly systems of operation.
The carbon dioxide that is a waste product of some types of businesses is considered a significant influence in global warming. Environmental groups have pushed for many years to have an accountability system for such dangerous by-products.
Most believe that emissions such as these cause a major acceleration in the rising average of world temperatures. When it was IPCC (International Panel on Climate Change) declared that global warming is a fact, it settled the question that had been debated for years.
This gave environmental groups the leverage they needed to insist that companies become more responsible in their production practices. The Kyoto Protocol, an international treaty to reduce emissions, as a direct result of these developments, went into effect in 2005.
This agreement was signed by many industrial and developing countries. In this document, they agreed to put a cap on the amount of emissions that they would produce.
This agreement would be impossible to meet without the advent of carbon credit. Each one represents about one metric ton of CO2 emissions. Many companies will need a lot of time to alter their practices in order to stay within their individual allotments for emissions.
Conversely, some companies do not use up all their allotted emission amounts. These can be converted to credits that can be bought and sold on a commodities market. This practice enables companies to stay under their cap.
Purchasing these certificates to counteract high emissions "buys" some time in order to make conversions to their production and working systems. Becoming more environmentally friendly is time consuming and expensive.
However, even though the United States never ratified the Kyoto Protocol, many companies in the states have voluntarily worked at staying within their limit of allowable emissions. To do this, a carbon credit is purchased for each metric ton of CO2 to help offset the amount of emissions that are produced in their operating practices.
Consumers as well as employees like to know they are working for environmentally responsible companies. Buying theses certificates allows companies to show their commitment to making the world a better place to live.
This practice attracts quality employees. It also proves to the consumer that the company is serious about benefiting the greater good.
An upsurge in awareness of global warming in recent decades has led to some changes in the way business is conducted on an international scale. The temperature of the planet is everyone's business and everyone must do their part to help provide for a brighter tomorrow.
Understanding Renewable Energy Certificates
Any individual or business that buys and installs a solar power system to generate solar electricity can not only lower electricity bills but also reduce their cost of ownership through the benefits of renewable energy certificates (REC) if they live in countries such as Australia, which implements the Mandatory Renewable Energy Scheme. In essence, these certificates are as good as cash payments as they reduce the cost of owning a solar power system and directly promote energy efficiency through the use of renewable energy sources.
Producers of bio-energy come in all shapes and sizes, from homeowners who are re-using frying oil to create a bio-fuel or installing solar panels to capture energy from the sun, to farmers who are setting aside a field to grow corn for ethanol, to major corporations who are setting up facilities to grow algae and so forth. These producers are taking care of their fuel requirements and many times they have additional fuel that's they're not using.
As a homeowner, if you don't use all of the solar energy you're collecting, your local electric company may already have set up a method for you to transfer that extra energy to them and they'll credit your bill. And if you're one of the larger producers, you've already found a way to get your product or energy to market. In any case, if you have a surplus of energy you can sell it to someone.
On the other side of the fence, we have the corporations and business all over the country who are required by law to purchase renewable energy if they want to continue to receive tax incentives or government grants, etc. And for whatever reason, it's not always economically feasible or physically possible for these companies to completely convert their power systems to take advantage of a renewable energy source.
So these companies, large and small, purchase renewable energy certificates, which grant them ownership of a specified amount of renewable energy. They may or may not be in a position to use that energy, but that's not the point. As long as they can present these certificates that show they've purchased the required amount of renewable energy, then they've fulfilled their obligation.
What happens to the energy they purchased that they can't use? Nothing. Most producers only produce energy to meet current demands. For example, your local electric company produces a lot of electricity to keep up with air conditioning demands on a very hot day, but production drops off as the temperatures cool off in the evening.
So by paying for those energy certificates, those corporations are either using those certificates to purchase gas or electricity, or they're subsidizing your energy consumption in exchange for their tax incentives and grants.
Everyone benefits from renewable energy certificates. The corporations are fulfilling their part of the bargain. The power companies can keep their costs affordable and still conduct research into new methods of generating energy. And the people producing the bio-energy are providing for their energy needs plus making a little money off of any surplus they might be generating.Read More
How does emissions trading work?
Before going into a detailed discussion of what is the carbon tax, we must first understand why this particular pricing scheme was implemented and what its purpose is to everyone involved. You may have heard of the Kyoto Protocol, an international agreement ratified by many first-world countries and several developing nations in the 1990s as part of a global initiative to reduce number of greenhouse gases in the atmosphere and to gradually lessen the world's carbon emissions. Australia's current carbon pricing scheme is another attempt at reducing the nation's carbon level index (CLI), which leads us to the study of the trading mechanisms for the buying and selling of carbon credits. According to Tim Wilson, director of climate change policy at the Institute of Public Affairs in Australia, PM Gillard's government has implemented, by far, the "largest and most broadly applied carbon tax" in the world.
The Carbon Trading Schemes: Deeply Flawed and Heavily Exploited
Carbon became such a hot commodity in Europe since the Union implemented its trading system for carbon credits among it's developing and non-developing member nations. After more than four years, economists, legislators, and hard-line critics of the carbon trade discovered it's a deeply flawed system. Unscrupulous firms took advantage of the trading scheme's weaknesses to make a killing in the market while they continued to charge their consumers expensive prices for the goods and services they delivered. Sadly, profits made from trading carbon credits were often left out in the books.
The original motivations for awarding carbon credits to businesses with lower CLI included naÃ¯ve assumptions about the goodness inherent in all human beings and how strongly this factor influences an individual or an organization to walk down the path of greed and selfishness. For instance, power firms who truly appreciated the opportunity to recover whatever investments they've poured into clean energy ventures would've also made efforts to pass on the torch of goodwill to end-users and business associates through discounted rates and offers of financial incentives to those who've also reduced their energy consumption (and their personal carbon footprint, too). Contrary to expectations, the reward system for companies with reduced emissions backfired because heavy emitters always had the option to buy more credits that would allow them to release more noxious fumes and pollutants into the air.
Is the Carbon Tax Similar to an Emissions Trading Scheme or ETS?
According to an SBS Australia article by Chiara Pazzano, imposing a $23 tax per megatonne of emissions isn't similar to capping the carbon levels for each firm. Within an ETS framework, the government issues an exact number of permits, which must be distributed equally to heavy emitters. Companies with low indices don't need to pay for these permits, but instead receive credits, which they can sell to firms who've gone over their carbon limits.
In contrast, the carbon-based levy puts a heavy financial load on companies who continue to pollute the atmosphere. The only way for them to avoid paying this tax burden is to reduce their carbon emissions. In effect, the tax policy works as a negative stimulus towards changing the attitudes and mindset of people for the better good. Considering that these people are amongst the most influential in the business sector, specifically in Australia's major industries, there's a strong likelihood that they'll also persuade their employees, business associates, and customers into following their lead.
Carbon-Free and Reduced-Carbon Energy Sources
One of the main contributors to the amount of carbon dioxide in the air is the production of energy. We all use electricity every day, in fact, we treat it as a given, we flick the switch and on go the lights, the television, and the microwave but have you ever stopped to consider where your energy is coming from? If you haven't, then you might not realize that most of our current energy needs are mostly being met by fossil fuels and coal. Both of these energy sources are responsible for a lot of the toxic carbon dioxide that is currently in our atmosphere, and it is because of these carbon dioxide emissions that scientists are growing increasingly concerned with its impact on our environment.
Because the rate at which we are using our current energy sources will see them depleted before too long, we must find clean, renewable, sustainable sources of energy to replace them. Of course, the all-important reason for being in pursuit of these alternatives is because what we currently are using is harming our climate. People need to become more aware of how their regular usage of electric is causing this harm and become motivated to look for alternatives.
Today energy companies are looking into using solar and wind energy on a wider basis than they are currently being used. In areas where some lakes and rivers can be reigned in, dams are a good source of hydropower. Where there are consistently moderate winds blowing, wind energy can be harnessed and is a great alternative form of energy, but not many areas fall into this category, and the ones that do might not have access to an amount of wind energy to meet their demands.
These are the most reliable sources of energy which are everlasting.These groups energy of the sun, geothermal energy, Thermal energy, energy from tides and biomass energy.Using these gives a pollution free environment with no carbon warning caused due to polluting agents into the air.Their usage also reduces the use of fossil fuels which also lessens the cost of digging and finding them.These can be used regularly without having a fear of their finishing.They can be replenished day by day.Its cost of getting them and transportation is negligible.It can solve health and financial purposes of people.It can also fulfill energy demands of people which are a great issue.It provides fresh and clean energy.It can be easily maintained at houses and large buildings.No alternate is needed in producing Renewable energy sources.It saves our earth from deterioration.It is conceivable as it helps in lessening air cleaning costs.
Right now researchers all over the globe are trying to find alternative energy sources. The most common yet controversial form of energy that does not release carbon dioxide into the atmosphere is a nuclear power, but concerns over the dangers of contamination and meltdowns have kept nuclear power from developing on a larger scale. Nuclear power may be a clean form of energy but is not without its share of downfalls; it produces harmful nuclear waste which takes millions of years to break down which can only be stored. This is problematic considering we only have so much land for storage and being contained in this way; the nuclear by products could eventually leach into the environment.
Untill a discovery is made that can help reduce our current energy problems, what we can all do to lend a helping hand, is to consistently cut back on our energy usage. Studies have shown that if we take the time to turn off the lights, we are not using, it would reduce by up to 25%, the total amount of energy being consumed.
Here is a great video of CO2 emission reduction:Read More
Global Warming and Greenhouse Gases
Ever stopped to wonder what might be causing the alarming severity of climate changes world wide? Remember that knowledge is the key to change. Although dramatic doomsday prophecies are an easy escape route, the real truth lies elsewhere. If you care enough about the future of your race on this beautiful planet, then you will go beyond prophetic utterances and find out what's causing these changes. You will find out the little or big things you can do to reverse the situation.
It is very true that worldwide climate changes, which are responsible for these disasters, are due to rapid changes brought about in the atmosphere due to mans thoughtless and injudicious activities on planet earth. Chances are that you have often come across the phrase "greenhouse effect", but never bothered to find out what it is. This disinterest and apathy might well be the most primary reason for the shortened stay of man on planet Earth.
The earths atmosphere contains small amounts of gases like carbon dioxide and methane, which help to capture solar heat energy. These gases thus perform a vitally important function, as without that optimum amount of heat energy, the earth would be too cold a place for life to exist in it. But these gases are produced in dangerously large quantities when coal is burnt for fire or steam. They are emitted into the atmosphere in large amounts from automobiles and factories Collectively these gases are referred to as green house gases and each has a impact on the amount of extra heat that the atmosphere retains.
Since these gases are responsible for capturing the suns heat energy and entrapping it within the earths atmosphere, their presence in large quantities in the atmosphere means rising atmospheric temperatures. After a point the temperature rises above the normal range, causing changes in the planetary wind system.
Global warming is also causing the polar ice-caps to melt, making the sea water levels rise, causing wide-scale floods and erosion of banks. This is causing great devastation on earth. Thus global warming is gradually causing widespread climatic changes.
Another factor giving rise to the green house effect is deforestation. As you perhaps remember from your early biology lessons, plants and trees take in carbon dioxide from the atmosphere, use it to produce their food, and release oxygen into the atmosphere, in a process known as photosynthesis.
Plants thus regulate the amounts of both these important gases in our surroundings. But due to rampant and heedless cutting of trees across the globe for commercial purposes, the world population of green life on earth has hit an all time low. The fewer number of trees means that a lesser amount of carbon dioxide is being absorbed by them, again increasing their amounts in the atmosphere.
Once you understand this, it doesn't take long to understand why people are so keen to deny the existence of global warming. The world's economy is dominated by companies that produce oil or gas or use its by-products: it is almost impossible to imagine modern life without fossil fuel. But here is the most basic of all the errors in the argument. Fossil fuels are not the only source of energy available to us. There is sufficient energy from the sun arriving on the planet in one hour to power all human activities for an entire year. The real challenge is how we rearrange our political and economic systems to harness that energy and reclaim a safe climate for all of us.
Climate change due to global warming has been described as the greatest threat facing humankind and "How to be a Humankind Superhero" empowers and inspires meaningful individual action.Read More
What are Carbon Credit on Plantations?
A carbon credit is a nonspecific term for any tradable certificate or permits speaking to one side to emit one ton of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent (tCO2e) equivalent to one ton of carbon dioxide.
Carbon credit on plantations and carbon markets are a segment of national and universal endeavors to moderate the development in concentrations of greenhouse gasses (GHGs). Carbon Credit on Plantations is equivalent to one ton of carbon dioxide, or in a few markets, carbon dioxide equivalent gasses. Carbon exchanging is a utilization of an emissions exchanging approach. Greenhouse gas emissions are topped and after that markets are utilized to assign the emissions among the gathering of directed sources.
As per the Kyoto convention, consumers of fossil powers are doled out CO2 emission levels. By and large, accomplishing these emission levels require enormous up degree or revamping of offices; acquiring costs excessively tremendous, making it impossible to justify the venture. Such gatherings are permitted to pay others to store carbon for them in return for the privilege to discharge carbon in the overabundance of their breaking points into the environment. This structures the premise of carbon credits.
The idea of carbon credits includes buying carbon units primarily in tons from a center element that totals contracts from providers (ranchers) who meet the criteria of carbon sequestration through the reception of preservation practices. The carbon units are then sold to a purchaser in the modern area expecting to counterbalance the CO2 emitted to the air through their assembling exercises.
Carbon credits can shape a gigantic wellspring of income for the creating scene. However, this requires carbon sequestration is embraced on a substantial scale in these locales. Carbon sequestration is the procedure by which carbon credits can be earned and along these lines exchanged the world market.
Carbon dioxide, the most imperative greenhouse gas created by combustion of fills, has turned into a reason for worldwide frenzy as its concentration in the Earth's climate has been rising alarmingly.
This villain, notwithstanding, is currently transforming into an item that people groups, nations, advisors, brokers, companies and even ranchers acquire billions of rupees. This was an unfathomable exchanging opportunity not over 10 years back.
Carbon credits are a piece of global emission exchanging standards. They boost organizations or nations that emit less carbon. The aggregate yearly emissions are topped, and the market designates a financial incentive to any deficit through exchanging. Organizations can trade, purchase or offer carbon credits in worldwide markets at the overarching market cost.
Manors are qualified to claim carbon credits as they are greenhouse stores, Union trade serves Kamal Nath has said.
Tending to the 114th yearly meeting of United Planters Association of South India (Upasi) on Monday, Nath said ware sheets, government exchange advancement bodies, and the business need to set up an exceptional reason vehicle to streamline the way toward asserting the carbon credits.
These credits are tradable permits given to organizations, different elements that cut their carbon emissions by putting resources into clean innovation.
The credits can be purchased by businesses commanded by the Kyoto Convention, to diminish their carbon emissions beneath a threshold.
How buying carbon credit on plantations can decrease emissions
Carbon credits make a business opportunity for decreasing greenhouse emissions by giving a fiscal incentive to the cost of contaminating the air. Emissions turn into an inward cost of working together and are unmistakable on the accounting report close by crude materials and different liabilities or resources.
The objective is to permit advertise components to drive mechanical and commercial procedures toward low emissions or less carbon serious methodologies than those utilized when there is no cost to emitting carbon dioxide and different GHGs into the air. Since GHG alleviation ventures create credits, this approach can be utilized to fund carbon diminishment conspires between exchanging accomplices and around the globe.
There are additionally many organizations that offer carbon credits to commercial and individual clients who are keen on bringing down their carbon impression on a deliberate premise. These carbon offsetters buy the credits from a venture support or a carbon advancement organization that has collected the credits from individual tasks. Purchasers and venders can likewise utilize a trade stage to exchange, which resembles a stock trade for carbon credits. The nature of the credits is situated to some degree on the approval procedure and refinement of the reserve or improvement organization that go about as the support to the carbon extend. This is reflected in their value; deliberate units normally have less an incentive than the units sold through the thoroughly approved Clean Development Mechanism.
How buying carbons attempt to reduce emissions?
Everyday, more people and businesses are becoming aware of the impact of the carbon emissions caused by their everyday activities on the environment. Some people are aware and doing something about it. But a lot of people think doing a little bit is enough. The truth is if you do a little you achieve a little. We need to make deep cuts in carbon emissions and help drive investment in low-carbon solutions. But what can you do? An increasingly popular option is to offset carbon and become carbon neutral.
Offset Carbon and be Carbon Neutral
To carbon offset is to reduce or stop carbon emissions somewhere else in the world for some of the carbon emissions you are responsible in your daily life. If you offset carbon emissions equivalent to the carbon emissions of all your activities in one year, then you are carbon neutral. You use a carbon credit to offset carbon emissions. A carbon credit generally represents one tonne of carbon emissions reduced in a carbon project somewhere else in the world. However, there has been some concerns about the calibre of carbon credits available to offset carbon emissions.
Most carbon offset projects use carbon credits created from trees or renewable projects. While these sound attractive there are concerns about using them as carbon offsets. A third type of carbon credit, a carbon emissions credit from a compliance regulated scheme, overcomes these concerns and empowers you to proactively reduce global carbon emission credits. These alternatives are investigated in the article "What are the alternatives to carbon offset / become carbon neutral".
A More Meaningful Solution - Carbon Emission Credits
Carbon emission credits work like this. Through a simple and powerful initiative, you access a compliance regulated market to buy and cancel carbon emission credits. Cancelling carbon emissions credits from the limited pool of credits in the European Emissions Trading Scheme means there are fewer credits available to be used by industry to emit carbon dioxide into the atmosphere. You are taking away the rights of industry to emit carbon dioxide.
Fewer carbon emission credits helps drive investment in low-carbon solutions such as energy efficiencies and renewable energy, as emitters can use the money from the carbon credits they sell to fund their investments in low-carbon solutions. They are rewarded for emitting less carbon dioxide.
Carbon emission credits have been referred to as the 'most pure' form of carbon emission reduction. We call it the Climakind alternative to offset carbon emissions because it helps ensure your carbon emissions reduction efforts are proactive, high quality and secure.
You help speed up the transition to a low-carbon future.
Making it Simple
To make it simple, Climakind provides affordable and easily recognisable levels of participation. You can choose to cancel carbon emission credits equal to one year of your annual carbon emissions and instantly become a Gold member, or start with one month's carbon emissions as a Bronze member. You can add to your membership anytime through the member lounge. You can even compare your purchases to the global average over different time periods.
Going green is the first step to take in trying to reduce carbon emissions. This means usage of energy sources derived from water and wind instead of sources derived from oil, coal and gas. The fuel that comes from coal and oil is called as fossil fuel. This type of energy is the main culprit in releasing tonnes of carbon into the atmosphere. Limiting fossil fuel usage will do the atmosphere a ton of good.
The second cause to be considered is the emission caused by vehicles. Vehicles produce a lot of carbon which is released into the atmosphere. Limiting vehicle use to the bare minimum will ensure you do your part in reducing the amount of carbon emitted into the atmosphere. This involves completing all your chores that require you to drive on one particular day of the week. Ensure you stick to this rule as much as possible. You can either invest or lease a hybrid car if you must drive. This option will help you save money on fuel along with reducing carbon emissions.
Imported meat products consumption can be limited as this process involves a lot of transportation thereby increasing the amount of carbon emitted from vehicles used for transportation. The same goes with fruits and vegetables and also food products. Anything that can't be locally produced will be imported from various parts of the world. It is therefore ideal to limit consumption of such products. Cultivation of fruits and vegetables in your own garden will help in limiting transportation. Lesser the necessity to commute long distances, lower the use of vehicles and this reduces carbon emission.
World Carbon Credits Market
World Carbon Credits Market can either be an emissions allowance or an offset of emissions. There are three mechanisms under the Protocol that a country or an operator in a developed country can use to accumulate greenhouse gas reduction credits.
1. Joint Implementation (JI):
This is a mechanism that allows an operator in a developed country with a high cost of greenhouse gas reduction to avail credits, by setting up a project in another developed country.
2. Clean development Mechanism (CDM):
Under this arrangement, an operator in a developed country can sponsor a project in a developing country where the cost of greenhouse gas reduction is lower, but the adverse impact on the environment is the same. Both countries benefit - the developed country gets credits, and the developing country gets capital investment in clean technology.
3. International Emissions Trading (IET):
Countries with a shortfall can try to cover them by trading in the international carbon credit market. Countries with capped emission commitments under the protocol can buy from countries with surplus credits.
Most transactions performed by operators, who have quotas set by the governments of the countries in which they operate, rather than by the governments themselves.
Each unit of the allowances (Certified Emission Reductions, or CERs) that traded privately or in the open market at the prevailing prices is the equivalent of one metric tonne of CO2 emissions. The CERs transferred between countries, with every transfer required to be ratified by the UNFCCC.
There are Climate Exchanges set up to enable Spot Markets for transactions. Futures and Options Markets have also established which facilitates pricing, as well as helps, maintain liquidity.
Prices for carbon emissions quoted in Euro for every tonne of carbon dioxide or equivalent; other greenhouse gases cited as carbon dioxide multiples in proportion to their relative global warming potential.
Four exchanges that trade in carbon allowances, currently, are Nord Pool, PowerNext, the Chicago Climate Exchange, and European Climate Exchange. Emissions abatement, offsetting, and sequestration programs offer companies the opportunity to generate credits that sold.
The emissions trade, with a worth of approximately EUR30 billion, and expected to top EUR1 trillion in a decade, is among the fastest-growing segments in financial services, and carbon is expected by experts to become the world's largest commodity market, shortly. A reasonable expectation as market price will ride on supply and demand rules to attract more groups into the trading circle.
Emissions will, henceforth, appear on the balance sheets of businesses either as assets or liabilities, depending on whether a particular company has a surplus or a deficit in carbon credits. Thus they will become part of the cost of doing things.
A company that emits 50,000 tonnes of greenhouse gases a year could get set a quota by the government of the country of its location of, say, 40,000 tonnes. Then, the company is required either to reduce emissions by 10,000 tonnes a year, or else, buy carbon credits to the extent or offset the same. (One way of offsetting emissions is to plant a certain number of trees for every carbon credit bought, under CDM).
A cost analysis taking the cost of emissions into account may reveal that it is better for the company to buy credits on the open market than to opt for clean machinery.Read More
What does Carbon Credit mean?
Carbon credits are an element used to aid in regulation of the amount of gases that are being released into the air. This is part of a larger international plan which has been created in an effort to reduce global warming and its effects.
A permit which allows a holder to emit 1 ton of carbon dioxide; Credits are awarded to groups or countries that have reduced their green house gases below their emission quota.
The plan works by capping the amount of total emissions that can be released by one company or business. If there is a shortfall in the amount of gases that are used, there is a monetary value assigned to this shortfall and it may be traded. These credits are often traded between businesses. However, they also are bought and sold in international markets at whatever the determined market value for them is.
How does Carbon Credit work?
The state of current investments available on the traditional market is not very stimulating for those wanting to make a decent return whilst not having to take a massive risk. Now more than ever, with the rising cost of living we need our money working harder. More and more investors are turning to alternative projects to create the returns that the traditional market can simply no longer make. The Carbon Market is the fastest growing market in the world. Set to outperform anything in the traditional investment market, a carbon credit investment is the most lucrative investment available on the retail market.
The introduction of the Carbon Tax on 1st July 2012 has affected far more than the big emitters it is established to tax. Carbon Credits are a tangible asset. There are therefore many profitable, safe and ethical investments to aid people on getting involved in the 'Carbon Rush'.
In descriptive terms; a carbon credit is representative of one metric tonne of greenhouse gas emissions removed from the atmosphere; thus offsetting carbon emissions. Growing trees in the Gippsland area of Victoria, Capital Alternatives and their Project Developers are generating carbon credits from fully accredited bio-diverse woodland. These Carbon Credits are classed as 'personal property' in law meaning their value is protected. Those smart investors who have the foresight to acquire them can sell them on to the big emitters for returns which dwarf more 'traditional investments' in the current financial climate.
Although the Carbon Credit market is global, Australian investors have a unique and rare opportunity which is cause for celebration because there is no escape for big emitters. Qantas has recently announced an increase in prices in an effort to combat the cost in offsetting their emissions. These credits can't be made out of thin air and need to created, and this is where the opportunity lies.
There is no escaping the fact that carbon credits are going to make those in the know very happy and very wealthy, the demand is enormous whilst the supply is limited. Capital Alternatives have rare opportunities for retail investors to become involved in the Australian Carbon Credits market by creating these highly sought-after credits while the price is still fixed at $23 until 1st July 2015 when the price floats.
Carbon credits are presently a key segment of national and international emissions trading schemes. They give an approach to lessen nursery impact emissions on a mechanical scale by topping aggregate yearly emissions and giving the market a chance to appoint a fiscal incentive to any shortage through trading. Credits can be traded between organizations or purchased and sold in international markets at the overarching market cost. Credits can be utilized to fund carbon reduction schemes between trading accomplices and around the globe.