carbon credit

Carbon credits are a tradable permit scheme. They provide a way to reduce green house gas emissions by giving them a monetary value. A credit gives the owner the right to emit one ton of carbon credit. International treaties such as the Kyoto Protocol set quotas on the amount of greenhouse gases countries can produce. Countries, in turn, set quotas on the emissions of businesses. Businesses that are over their quotas must buy carbon credits for their excess emissions, while businesses that are below their quotas can sell their remaining credits. By allowing credits to be bought and sold, a business for which reducing its emissions would be expensive or prohibitive can pay another business to make the reduction for it. This minimizes the quota's impact on the business, while still reaching the quota. Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price. There are currently two exchanges for carbon credits: the Chicago Climate Exchange and the European Climate Exchange.

The GHG data table as per United Nations Framework Convention on Climate Change(UNFCCC):-

CO2 - Carbon dioxideCH4 - MethaneN2O - Nitrous oxidePFCs - Perfluorocarbons HFCs - Hydrofluorocarbons SF6 - Sulphur hexafluoride

The Global Warming Potentials (GWP) used for presentation of CH4 and N2O in terms of CO2 equivalent are 21 and 310, respectively. That is if we reduce 1 ton emission of methane it is equivalent to reducing 21 tons of CO2 as such.

So now we are concerned of making people aware of the necessity to bring down the GHG much below 1990 base line. To execute this mission world wide , this new “CURRENCY”, Carbon Credit and to spread awareness of such a subsidy for Clean Development Mechanism (CDM).

This project is on a CDM, a waste treatment plant. The project’s target is to consider a small waste dumped area ( Municipality waste dumps) and to calculate the total amount of METHANE evolved from it in a year. The waste is then classified, those recyclable are recycled and the rest is subjected to disposing methods like thermolysis. By this method we can avoid emission of methane but only CO2 is emitted. Thus we saved 20 tons of carbon dioxide from global warming. Thus the net reduction in emission of methane and thus equivalent amount of carbon dioxide can be tabulated. This can be published through any of the two climate exchanges and a funding of $10 per ton of CO2
Reduction may be claimed for the project. Thus this project is a mission to spread awareness among people the necessity to reduce Green House Gasses(GHG) and this is eased Carbon Credits nullifies financial burdens on such CDMs.