22 Things You Should Know About Carbon Credits
- One unit of Carbon Credit equals one tonne of Carbon Di Oxide not emitted.
- The Kyoto protocol, under which all these carbon credit trading stuff take place, theoretically, is valid only up to 2012.
- Installations that has been allotted credits need not pay money for getting those, however, the allotted credits have a monetary value and can be traded for money.
- Carbon Credit is maintained in the form of an Electronic Certificate, similar to that of a De-Materialized (Demat) Share Certificate.
- Credits allotted through CDM is called Certified Emission Reduction ( CER), while credits earned through Joint Implementation are called Emission Reduction Unit ( ERU).
- GHG ( Green House Gases), as defined by UNFCCC includes carbon dioxide, Methane, Nitrous Oxide, Hydro-fluorocarbons, Perfluorocarbons, and Sulphur Hexafluoride.
- A typical CDM Project consists of 6 main stages - Project Identification --> Host Country Approval --> Project Validation --> Project Registration --> CER Verification -->Issuance of CERs
- Carbon Credits are usually classified as production cost and this 'cost' is passed on to the consumers.
- Most companies in India are still not aware that they can earn tradable carbon credits ( by adopting green technologies).
The scope for CDM consultants in providing advisory services is getting wider, day by day. - India has emerged as the second-largest seller of carbon credits globally with 489 registered CDM projects till date (24% of total projects registered under CDM globally.
- Of the 294 Indian Projects which have attracted European buyers, 107 are biomass projects.
- In India, one can trade carbon credits through Multi Commodity Exchange(MCX) and the National Commodity and Derivatives Exchange (NCDEX)
- Carbon Credits Trading is not just for big companies.
Even medium and smaller trading companies can engage in Trading. - As per the current trends, India & China will be the biggest sellersof Carbon Credits, and European Union, the largest buyer
- As of March 2010,there are currently more than 2000 registered CDM projects in 58 countries, and about another 2300 projects in the project validation/registration pipeline.
Based on estimates in submitted project design documents, the CDM could generate more than 2.
9 billion certified emission reductions by the end 2012. - India or China ( or any developing country for that matter), doesn't buy credits, normally.
Installations in these places adopt technology, that reduces GHG ( green house gases) and earn credits. - Chicago Climate Exchange (also known as CCX) was the first carbon exchange to start trading in six greenhouse gases in 2003.
- Energy efficiency can account for 60%of avoided emissions in 2030.
- In China, the majority of CDM credits come from hydro and wind energy projects.
- Other than India and China, other countries having registered CDM projects include Brazil, Chile, Columbia, Indonesia, Israel, Malaysia, Mexico, South Africa, South Korea, and Thailand.
- China represents 50% of the 918 hydro projects registered globally
- The potential for emission reduction in Sri Lanka is around 6 million tonnes Carbon dioxide per year, however, not a single project has been registered for CDM yet.
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