The dangerous levels of harmful greenhouse gases such as CO2 in the atmosphere has resulted in global anxiety about the increasingly destructive effects they have on the environment. Methods such as carbon offset and carbon credits were suggested to improve the situation by giving incentives to companies so that they conduct their operations in an ecologically sustainable manner.
The idea of carbon credits was introduced recently. A single carbon credit permits one tonne of carbon dioxide or a corresponding amount of any other greenhouse gas to be released in the air. The carbon trading system, which is basically the financial transaction of these carbon credits, results in capping of global emissions.
Every company is allotted a specific number of carbon credits that show the quantity of carbon dioxide and other harmful gases that it can discharge. A firm needs to resort to carbon trading when its emissions are more than the levels prescribed by its carbon credits quota, so as to buy credits from those organizations that have made use of greener techniques and have spare carbon credits.
As a consequence, the worldwide carbon emissions stay within permissible levels, and the companies come up with eco friendly ways of conducting business so that their emissions are lower and they are spared of making extra expense on carbon credits. The system also incentivizes greener organizations and they are encouraged to keep getting better so that they can enhance their profits by selling carbon credits.
It is easy to purchase carbon credits from numerous agencies that sell them in a free market from where they can be bought like any other financial instrument. Carbon credits can also be purchased by persons not representing any organization, if they desire to bring down their own carbon footprint. The money that you put in this way is routed to fund green projects at any location in the world so that the emissions made as a result of your activities can be neutralized.
The idea of carbon credits was introduced recently. A single carbon credit permits one tonne of carbon dioxide or a corresponding amount of any other greenhouse gas to be released in the air. The carbon trading system, which is basically the financial transaction of these carbon credits, results in capping of global emissions.
Every company is allotted a specific number of carbon credits that show the quantity of carbon dioxide and other harmful gases that it can discharge. A firm needs to resort to carbon trading when its emissions are more than the levels prescribed by its carbon credits quota, so as to buy credits from those organizations that have made use of greener techniques and have spare carbon credits.
As a consequence, the worldwide carbon emissions stay within permissible levels, and the companies come up with eco friendly ways of conducting business so that their emissions are lower and they are spared of making extra expense on carbon credits. The system also incentivizes greener organizations and they are encouraged to keep getting better so that they can enhance their profits by selling carbon credits.
It is easy to purchase carbon credits from numerous agencies that sell them in a free market from where they can be bought like any other financial instrument. Carbon credits can also be purchased by persons not representing any organization, if they desire to bring down their own carbon footprint. The money that you put in this way is routed to fund green projects at any location in the world so that the emissions made as a result of your activities can be neutralized.
About the Author:
Learn more about Carbon Credits and Carbon Trading to get a deeper understanding on how you can help in saving the environment. Click here to get your own unique version of this article with free reprint rights.
0 comments:
Post a Comment