Carbon Trading , A Solution for Climate Change ?

Climate change is referred to as the change in global or regional climate patterns. In particular these changes have been apparent from the mid to late 20th century onwards.

Human activities, such as burning fossil fuels and destroying rainforests, have an increasing influence on the climate and the Earth’s temperature. This adds huge quantities of excessive greenhouse gases , increasing the greenhouse effect leading to global warming.

What is Carbon Credit?

Carbon credit is a permit that allows a country or organization to produce a certain amount of carbon emissions which can be traded if the full allowance is not used.  

The concept of carbon credits came into existence as a result of increasing awareness of the need for population control. Carbon credits were one of the outcomes of the “Kyoto Protocol. An international agreement between 169 countries. The Kyoto protocol created legally binding emission targets for developing nations. To meet these targets, nations must limit CO₂ emissions. The very phase Kyoto protocol has become synonymous with the idea of saving the planet from global meltdown.  This can be accomplished by either reducing emission or by absorbing emissions through processes such as tree planting and sequestration.  

Under the Kyoto protocol, developed countries are required to limit their greenhouse gas emissions according to the following formula.

Actual emissions must be less than or equal to the assigned amount +/- carbon sinks and Kyoto emissions.

They are a measure devised by the Kyoto Protocol to reduce world greenhouse gas emissions, and hence fight climate change.

Carbon credits are certificates awarded to countries that are successful in reducing emissions of greenhouse gases such as water vapour, carbon dioxide, methane, nitrous oxide and ozone.

Buying carbon credits is not a charitable donation, but a retail action. Trade in carbon credits has the potential to make forestry more profitable and to sustain the environment at the same time. One of the primary solutions for climate change being thought by global warming alarmists is the purchase and sale of carbon credits. For trading purposes,

1 credit = 1 ton of CO2 emissions.

 Credit can be exchanged between businesses or bought and sold in international markets at the prevailing market price.

Each carbon credit represent one metric ton of CO2 either removed from the atmosphere or saved from being emitted. The carbon credit market creates a monetary value for carbon credits and allow credits to be traded. For each ton of CO2 saved or sequestered, Carbon credit producers may sell one carbon credit. More information can be read from here  Archived.

Carbon offset process

Many types of activities can generate carbon offsets. Renewable energy such as wind farms or installation of solar, small hydro, geothermal and biomass energy on the other hand Biodiversity offsetting which includes planting trees and carbon producers mainly looking into mangrove plantations rather than tropical plantations because, carbon stored by mangrove tree takes four times greater than that stored carbon by the other tropical forests, says Professor Mala Amarasinghe, pioneer mangrove researcher in Kelaniya University, Sri Lanka. However, manmade mangroves need special attention. If not, the plants will die or the growth of the plants will be limited and it will not be possible to get the desired result. Mangrove plants are not easy to grow since expected results may not be achieve in many places, she said.

More information about carbon offset process can be read in here  archived.

Does carbon trading work to reduce emissions?

Carbon trading is increasingly criticized, not least because carbon dioxide emissions in industrialized countries are not declining at the necessary rate to avert catastrophic climate change.

Many scientists, economists and NGOs believe that carbon trading is a dangerous distraction from the need to end fossil fuel use and move to a low carbon future. We do not have time to wait for a high price on carbon: we must shift to a low carbon energy, agriculture, transport and industrial world now. The best way to do this is through direct regulation. More can be read from here. Archived.  Despite the flaws inherent in pollution trading, the concept continues to appear in proposals to reduce environmental harm.