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Carbon credits

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Detail study on carbon credits.

Text of Carbon credits

  • 1. CCAARRBBOONN CCRREEDDIITTSS

2. TTOOPPIICCSS WWEE WWIILLLL TTAALLKKAABBOOUUTT 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 CCHHAANNGGEESSINCREASING SEAINCREASING SEALEVELLEVELCHANGES IN WINDAND PRECIPITATIONCHANGES IN WINDAND PRECIPITATIONCHANGES INCROP YEILDSCHANGES INCROP YEILDS 4. CCOO22 EEMMIISSSSIIOONNSS BBYY IINNTTEERRNNAATTIIOONNAALLCCOOUUNNTTRRIIEESS 5. 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 temporalboundary of the population, system or activity ofinterest. Calculated as carbon dioxide equivalent(CO2e) using the relevant 100-year global warmingpotential (GWP100) 6. DDEEFFIINNIITTIIOONNA carbon credit is a generic term for anytradable certificate or permit representing theright to emit one tonne of carbon dioxide or themass of another greenhouse gas with a carbondioxide equivalent (tCO2e) equivalent to onetonne of carbon dioxide. 7. In short1 Carbon Credit = 1 ton of carbon dioxide 8. HHOOWW IITT CCAAMMEE IINNTTOO BBEEIINNGG?? 9. KKYYOOTTOO PPRROOTTOOCCOOLL 10. EEMMIISSSSIIOONN AALLLLOOWWAANNCCEESS An allowance to emit one metric tonne of carbon dioxideequivalent entered into countrys national registry. Operators can sell their unused allowances as carboncredits. Operators needing more carbon credits can buy itprivately or in the open market. 11. BUYING CCAARRBBOONN CCRREEDDIITTSSAANNDD RREEDDUUCCIINNGG EEMMIISSSSIIOONNSS 12. CCAARRBBOONN TTRRAADDIINNGG Carbon trading is an administrative approach used tocontrol pollution by providing incentives for achievingreductions in emissions of pollutants. Overall goal of an carbon emission trading plan is tominimize the cost of meeting a set emissions target. 13. SETTING AA MMAARRKKEETT PPRRIICCEE FFOORRCCAARRBBOONN.... Optimal carbon price is the market price on carbonemissions that balance the incremental costs of reducingcarbon emissions with the incremental benefits of reducingclimate change. Price of carbon in market is raised. It can achieve fourgoals. Carbon Credits are traded at CO2 exchange in UK, CDMexchange in Europe and the Chicago climate exchange. Current carbon credit price was Rs 752.5 as traded on16/3/11. 14. IINNDDIIVVIIDDUUAALL CCAARRBBOONN CCRREEDDIITTSS Individual credits for public transport. Individuals who exceed their allocation would be able topurchase additional credits from those who use less. Personal carbon trading has been criticized for its highimplementation costs. Personal carbon trading would be a progressive policy,redistributing money from the rich to the poor - as therich use more energy than the poor. 15. CCAASSEE SSTTUUDDYY A green stealth tax is a tax levied in such a way that islargely unnoticed, or not recognized as a tax. Large public and private sector organizations forceshospitals, fire brigade, etc. to register for the scheme tobuy the credits for their emissions. Crossing the limits of carbon credit leads to heavypenalization. Rewarding credits are awarded for staying within theprescribed limits. 16. CCAASSEE SSTTUUDDYY An efficient mechanism to reduce green house gasemissions in rural India. A proposal of mathematical model based householdbiogas plant project for energy self sufficiency in ruralIndia. A research study carried out in 10 villages of Jhunjhunudistrict of Rajasthan. Main aim was to make the project economically feasibleby earning income from the sales of carbon creditsthrough the project. 17. IINNDDIIAANN SSCCEENNAARRIIOO India comes under a non-annex country. According to a report, the total CO2 equivalent emissions in2007were 1,612,362.00 in thousands of metric tones. Prices of carbon products are expected to rise in future tomeet targets. There are some major sources of GHGs emission in India.Many CDM projects have come up for future. 18. AADDVVAANNTTAAGGEESS AANNDDDDIISSAADDVVAANNTTAAGGEESSADVANTAGES Better technologies for the company which is benefiting fromgeneration of CERs. Technology transfer from developed to developing countries(Due to low cost structure in developing countries). Additional source of foreign investment in developingcountries which act as a catalyst in developing cleanertechnologies. Channel CDM funds to investment priorities The CDM fundscan be channelized into building or improving projects, thusreinvesting it for higher growth. Development of cleaner technologies leading to sustainabledevelopment where countries have a strategic advantagefrom now in terms of pollution. Environmental benefits due to lesser GHG emissions. 19. DISADVANTAGES Provision of cheapest way of purchasing climatedestroying right. Due to nature and process of complexity involved,foreign players may dominate domestic industries forthe incentive if CERs. CDM investment could affect national developmentstrategies, possibly adversely affecting nationaldecision-making processes. Until future commitmentperiods are agreed, the CDM may not provide incentivesfor financing long-term development projects andstrategies. 20. CCOONNCCEERRNNSSProjects take approximately 2 years to beissued.India is still not counted among the top threecarbon credit nations because of its projectrejection rate.The projects show shortfall in the techniquesand methodology. 21. FFUUTTUURREE OOUUTTLLOOOOKK Carbon reduction targets to be announced by regulatorybodies. Increasing carbon credits demand will lead to increase inthe size of carbon credit market. 22. CCOONNCCLLUUSSIIOONNThe world must take action to cut carbon dioxideemissions. And this action needs to be reconciled withincreasing energy demand from a rising population andeconomic growth. 23. RREEFFEERREENNCCEESSwww.google.comwww.studygalaxy.comwww.authorstream.comwww.scibd.com 24. TTHHAANNKK YYOOUU