CARBON CREDITCARBON CREDIT

Prepared by :

Jimit.S.Dhruv

Elect.Engg.Valiya Institute

OfTechnology-Valia.

Introduction to carbon credit.Introduction to carbon credit. Background.Background. Emission Allowances.Emission Allowances. Kyoto's 'Flexible Mechanisms' .Kyoto's 'Flexible Mechanisms' .Carbon credit in India.Carbon credit in India. How buying carbon credits can reduce How buying carbon credits can reduce emissions. emissions.

Criticisms

CONTENTS

INTRODUCTIONINTRODUCTIONCarbon creditsCarbon credits as a key component as a key component

Use of credits.Use of credits.

Carbon credits with compniesCarbon credits with compnies

Quality of carbon credits.Quality of carbon credits.1.1. Validation processValidation process2.2. Sophitication of the fundSophitication of the fund

Two types of creditsTwo types of credits1.1. Carbon offset creditsCarbon offset credits2.2. Carbon reduction credits Carbon reduction credits

One Carbon Credit is equal to one ton of Carbon.One Carbon Credit is equal to one ton of Carbon.

BACKGROUND$BACKGROUND$

• Major sourcesMajor sources

• Use of causesUse of causes

• The kyoto protocal at KYOTO,The kyoto protocal at KYOTO, JAPAN—December 1997JAPAN—December 1997

• It came into utilisation in 16FEB 2005It came into utilisation in 16FEB 2005

• Under that aggrement the industrilised countries reduce their Under that aggrement the industrilised countries reduce their emmision by 5.2% compared to year 1990emmision by 5.2% compared to year 1990

• The mechanism was formalized in the The mechanism was formalized in the Kyoto ProtocolKyoto Protocol, an , an international agreement between more thaninternational agreement between more than 170 countries. 170 countries.

GHGs EMISSIONS

EMISSION EMISSION ALLOWANCESALLOWANCES

• Emmision done in five year period from 2008-2012 but till nowEmmision done in five year period from 2008-2012 but till now

1.1. 8% EUROPION UNION8% EUROPION UNION2.2. 7% UNITED STATES7% UNITED STATES3.3. 6% JAPAN6% JAPAN4.4. 0% RUSSIA0% RUSSIA5.5. 8% AUSTRALIYA8% AUSTRALIYA6.6. 10% ICELAND10% ICELAND

• Quotas of protocolQuotas of protocol

• Each oprations has an allownces of creditEach oprations has an allownces of credit

• Application of credit in industriesApplication of credit in industries

• Since 2005 the kyoto mechanism Has been adopted for co2 trading by Since 2005 the kyoto mechanism Has been adopted for co2 trading by all the coutrieswithin the europion unionall the coutrieswithin the europion union

Kyoto's 'Flexible Kyoto's 'Flexible mechanisms'mechanisms'

• A credit can be emmision aaA credit can be emmision aa

• Three Mechnism:Three Mechnism:

1.1. JOINT IMPLIMENTATIONJOINT IMPLIMENTATION

2.2. CLEAN DEVELOPMENT MECHANISMCLEAN DEVELOPMENT MECHANISM

3.3. INTERNATIONAL EMMISION TRADINGINTERNATIONAL EMMISION TRADING

• These carbon projects can be created by a national government or by These carbon projects can be created by a national government or by an operator within the country. an operator within the country.

CARBON CREDIT CERTIFICATE

How buying carbon How buying carbon credits can reduce credits can reduce

emissionsemissionsCarbon credits create a market for reducing greenhouse emissions.Carbon credits create a market for reducing greenhouse emissions.

By way of exampleBy way of example

After this the business may decide that it is uneconomical or infeasible to invest in After this the business may decide that it is uneconomical or infeasible to invest in new machinery for that year .new machinery for that year .

Also consider alternate sources of energy.Also consider alternate sources of energy.

Although if a factory continues to emit ghg,then it would pay other group.Although if a factory continues to emit ghg,then it would pay other group.

Another seller may have already invested in new low-emission machinery and have a Another seller may have already invested in new low-emission machinery and have a surplus of allowances as a result. surplus of allowances as a result.

Carbon Credit & India.Carbon Credit & India.

India comes under the third category at UNFCCC but is leader.India comes under the third category at UNFCCC but is leader.

Jindal ‘s technology would prevent 15 million tonnes of carbon from being Jindal ‘s technology would prevent 15 million tonnes of carbon from being discharged into the atmosphere in the coming decade.discharged into the atmosphere in the coming decade.

ie $15/tonne that is a total of $225 million. ie $15/tonne that is a total of $225 million.

World Bank had just handed over $10 million to India’s Infrastructure World Bank had just handed over $10 million to India’s Infrastructure Development Finance Company to fund ‘clean’ projects that would generate Development Finance Company to fund ‘clean’ projects that would generate saleable carbon credits. saleable carbon credits.

CriticismsCriticismsSometimes difficult to manage emissions.Sometimes difficult to manage emissions.

The Kyoto mechanism is the The Kyoto mechanism is the only internationally-agreed only internationally-agreed mechanism for mechanism for regulating carbon credit activities .Its supporting organisation, the UNFCCC, regulating carbon credit activities .Its supporting organisation, the UNFCCC, is the only organisation with a global mandate on the overall effectiveness of is the only organisation with a global mandate on the overall effectiveness of emission control systems.emission control systems.

The Kyoto trading period only applies for five years between 2008 and The Kyoto trading period only applies for five years between 2008 and 2012. 2012.

Developed countries get license for emission.Developed countries get license for emission.

Over all machinery increases, so emission of ghg increases.Over all machinery increases, so emission of ghg increases.

Just a beginningJust a beginning..

We are already behind.We are already behind.

SAVE EARTH

ours should be green attitude

THANK YOUTHANK YOU

Links:Links:

www.wikipedia.com

www.google.com