Carbon Credit
ABSTRACT
We are in debt to Carbon Dioxide (CO2) and other green house gases for our presence on earth. As they help in stabilizing temperatures to levels sustainable for organic life – by what is known as green house effect. In modern times burning of fossil fuels like coal, oil, and natural gas combined with fast deforestation has led to unprecedented level of green house gas emission. Here came in to existence the concept of Carbon Emission Trading developed during the Kyoto Protocol in 1997. The Kyoto Protocol sets limits on total emissions by world’s developed economies. The protocol allows countries that have emission units to spare, to sell this excess capacity to countries that are over their targets. This research paper discusses what is Carbon Credit, its requirement, and its status in India and how India is gaining through Carbon Credit. Currently India holds second position behind China in the global CDM market.
INTRODUCTION
Climate change and global warming is happening all around us. Soon it will start to shape every aspect of our lives in ways that we might not comprehend: from how we travel and what products we buy, to where we live and how we work. Hence, there is a concern that the use of non-renewable fuels and other human activities are increasing greenhouse gases in the atmosphere, contributing to global warming. To avoid this a new currency is emerging in world markets. Unlike the dollars, Euros and Yen that trade for tangible goods and human services, this new money exchanges for pollution--particularly emissions of carbon dioxide, which are caused by burning fossil fuels and are the leading cause of global climate change. Carbon credits, as they are called, are poised to transform the world energy system and thus the world economy.
Carbon credits as currency allow companies and individuals to compensate for their carbon emissions by either reducing carbon dioxide output
We are in debt to Carbon Dioxide (CO2) and other green house gases for our presence on earth. As they help in stabilizing temperatures to levels sustainable for organic life – by what is known as green house effect. In modern times burning of fossil fuels like coal, oil, and natural gas combined with fast deforestation has led to unprecedented level of green house gas emission. Here came in to existence the concept of Carbon Emission Trading developed during the Kyoto Protocol in 1997. The Kyoto Protocol sets limits on total emissions by world’s developed economies. The protocol allows countries that have emission units to spare, to sell this excess capacity to countries that are over their targets. This research paper discusses what is Carbon Credit, its requirement, and its status in India and how India is gaining through Carbon Credit. Currently India holds second position behind China in the global CDM market.
INTRODUCTION
Climate change and global warming is happening all around us. Soon it will start to shape every aspect of our lives in ways that we might not comprehend: from how we travel and what products we buy, to where we live and how we work. Hence, there is a concern that the use of non-renewable fuels and other human activities are increasing greenhouse gases in the atmosphere, contributing to global warming. To avoid this a new currency is emerging in world markets. Unlike the dollars, Euros and Yen that trade for tangible goods and human services, this new money exchanges for pollution--particularly emissions of carbon dioxide, which are caused by burning fossil fuels and are the leading cause of global climate change. Carbon credits, as they are called, are poised to transform the world energy system and thus the world economy.
Carbon credits as currency allow companies and individuals to compensate for their carbon emissions by either reducing carbon dioxide output
Bibliography: ARTICLES / MAGAZINES • Weyant, John P., 1993, “Costs of Reducing Global Carbon Emissions”, The Journal of Economic Perspectives, Vol • Sharma, Manoj; Vijay, T.Sai and Sharma, Sheetal, 2008, “Carbon Trading : Opportunity for Indian Companies”, GNA-IMT, Vol. 3, No. 1, pp. 108-115. • Capoor ,Karan and Ambrosi, Philippe, 2007, “State and Trends of the Carbon Market 2007”, World Bank Carbon Finance Business’s, pp12-48. • Mr. Arjun, 2008, “CARBON CREDITS - Project Financing in India”, VISRISTI, Vol.10, No.2, pp. 35-38.