Carbon credits (earning / trading) some info .... (Some Thoughts to chew and digest !)

The earth is warmed by gases in the atmosphere that are commonly referred to as greenhouse gases. Greenhouse gases include water vapor, carbon dioxide, methane, nitrous oxide, and ozone. Some greenhouse gases occur naturally and some are the result of human activity. A large amount of carbon dioxide (CO2) in the atmosphere is the result of human activity, such as the burning of fossil fuels. Greenhouse gases work by stopping and reflecting back some of the warmth emitted from earth. This is known as the greenhouse effect. Without greenhouse gases the earth would not be warm enough to sustain life, so such gases are an important component of the atmosphere.

However, the concentration of several greenhouse gases has increased over time, and it is widely accepted that this increase has led to global warming. Accordingly, global concern exists on the effect of greenhouse gases on earth's weather and ecosystems. Effects attributed to global warming are loss of ice shelves and the related increase in sea level, changes in rainfall patterns, and increased intensity and frequency of extreme weather events. Serious economic costs are the result.

In an effort to mitigate these costs many countries are now looking at ways of reducing greenhouse gases in the atmosphere. A greenhouse gas identified as being a primary concern is carbon dioxide. It is estimated that atmospheric carbon dioxide has increased by 100 parts per million over the past 200 years (i.e., post industrialization).

There are two principal ways of dealing with atmospheric carbon dioxide. One approach is to reduce emissions of carbon dioxide. For example, limiting the burning of fossil fuels will decrease the amount of carbon dioxide released into the atmosphere. The other approach is to increase efforts to remove or absorb atmospheric carbon dioxide.

Systems that remove carbon from the atmosphere are known as carbon sinks. The most common carbon sinks are the oceans, soil, plants and other organisms that use photosynthesis to remove carbon from the atmosphere by incorporating it into biomass. Forests are the most frequently talked about type of carbon sink. The use of trees to absorb carbon dioxide has been extensively studied and theorized. However, although carbon dioxide is absorbed into trees for some time, it is not permanently sequestered from the environment. This carbon is subject to release back into the atmosphere as a result of the trees burning or decaying.

Another important carbon sink, one that is perhaps less well known, is the ocean. The way the ocean works as a sink is carbon dioxide dissolves into it, removing it from the atmosphere. The concentration of carbon dioxide in the ocean increases proportionately as atmospheric carbon dioxide increases. However, as with some other carbon sinks, the carbon absorbed into the oceans can eventually find its way back into the ecosystem.

Carbon sequestered in carbon sinks as an example can be the basis for earning "carbon credits" that can be traded as part of an emissions trading scheme. Emission trading schemes typically utilize a cap-and-trade arrangement wherein a governing body sets a cap on allowable emissions and issues emission permits that represent the right to emit a specific amount of a pollutant. Participants that do not have enough emission permits to cover their emissions can purchase credits from participants that have extra permits. Participants are also able to purchase credits from entities that have earned credits by creating a net reduction in greenhouse gases.

The Kyoto Protocol to the United Nations Framework Convention on Climate Change (an international environmental treaty aimed at reducing emissions of greenhouse gases) has established a framework for emissions trading schemes. The European Union Emission Trading Scheme, which is modeled on the Kyoto Protocol, is the largest emissions trading scheme. Various emissions trading schemes have also been in use within the United States and also in India for some time. Carbon credits are awarded to entities that have produced a verifiable reduction in atmospheric carbon.

In addition to being traded under an emissions trading scheme, carbon credits can be purchased by companies or individuals who wish to lower their carbon footprint on a voluntary basis (i.e., outside of an emissions trading scheme). Carbon credits must be validated or certified, typically by a governing body, before they can be traded meaningfully in a marketplace. For instance, the Kyoto Protocol has established the Clean Development Mechanism (CDM), which validates and measures projects to ensure they produce authentic benefits to the environment.

Industries to be encouraged for earning carbon credits Ashish Amin / Mumbai/ Gandhinagar Jun 10, 2008, 04:59 Task force recommends setting up of environment management cell. The ever-increasing pollution levels in developed countries and the Kyoto Protocol norms where developing countries can sell carbon credits has caught the eye of the Gujarat government...

Read Some Video : (to appreciate the idea/concept in fun mode) ...

Carbon Footprints.1

Carbon Footprints.2

Carbon Footprints.3