What are the benefits of carbon credits?

In INDIA, 50% AIR POLLUTION IS CAUSED BY AUTOMOBILES IN ALL METRO / Mega cities. But State Govts are inactive to reduce the emission level by alternative energy like C N G , BIO DIESEL C B M ,LPG ETC ETC . There is no technological draw back in our country but due to vote bank , the ruling political parties are not interested to disturb the large number of transport operators & vehicle owners in private and public sectors. It's question of political willingness.WHO CARES FOR C D M BENEFIT AND CARBON CREDIT EARNING !

It is a kind of system that is meant to work for the Third world countries to overcome technological drawbacks or upgrade their technologies so that they are not only green but also help in the process of reducing the carbon emissions. This concept is part of the Kyoto Protocol wherein all the countries of the world except USA, have agreed to reduce the carbon emissions by signing the kyoto protocol. There are two groups the first group is made of the developed nations and the other is the devloping nations. under this regime the developed counties will buy carbon credits which is computed by the amount of carbon di-oxide emissions that is reduced by using a safe technology or improvement or energy savings. Usually any work or effort made in producing or using a service requires energy. The energy source is equated with carbon emissions (tons of carbon). Hence if you use a green initiative such a flourascent buld in place of incadescent bulb, you are saving energy. Similarly use of LPS/CNG in place of Petroleum is aving energy. Use of Hydel instead of Thermal is saving energy. The regime is aimed at reducing the emission of carbon di oxide into the atmospehere so as to alleviate the green house effect. 6 gases have been identified as green house gases or which hasten the Green house effect. These gases are with varying GH potential. Carbon di -oxide is considered a base unit and hence the Carbon units. Hence any modifications in usage pattern of the technology aimed at reducing the carbon emissions is computed and this is called CERs. So the no. of CERs are traged usually at the UNFCCC or private trading exchanges like chicago exchange etc. The developed nations would normally buy these CERs in exchange for money to help the third world countries emply safer technolgoy. The developed nations have a stricter environmental laws that ensure that those companies who are emitting higher amount of Carbon can off-set this by buying the crabon credits from the third world contries.