What exactly are Carbon credits?

Question

I've come across it a few times but don't know what they are. If you could help me out, that'd be great.

Answer 1

You pay someone to cut back on thier use of fuel so you can continue to use yours.   If that sounds stupid, well it is.

Answer 2

It's very widely misunderstood, as you can see by the answers above calling it a scam, but here's how it works.  If company A has very low emissions and company B has emissions that exceed prescribed limits, company B can buy carbon credits from company A to avoid being fined or forced to change their process.  The theory is that this way emissions will average out to meet the standards.  If it's true that Al Gore pollutes, he can't make any money by selling carbon credits because he would have none to sell, so that's nothing but a myth.  It's a very Republican-oriented, market-driven approach to what would otherwise be strict restrictions, but Republicans still don't like it.  Don't ask me why.

[edit]

I'm not saying it's the ideal solution.  As others have pointed out, it's not strict enough to really solve the pollution problem completely, but the thing that seems strange to me is that some of the stongest objectors are the Republicans who would be screaming bloody murder over the alternative, which is to require everyone to meet emission standards by law.  Of course, if they were smart they'd do what it takes to cut emissions rather than paying for carbon credits year after year.  It would probably save them money in the long run.

Answer 3

You can buy carbon credits from Big Al so he can get richer and you can do something for the environment and then you can feel good about yourself.

Answer 4

carbon credits are a scam.

If you were to buy carbon credits to make you carbon neutral for the year, then someone plants trees on their land, and you pay them.  Except those trees can take 30 years before they soaked up the carbon you are responsible for the year you bought those credits.

Briefly, it wouldnt stop global warming because you are still polluting.  Each person would need like 3 acres of trees to their name to be carbon neutral.  10 if you drive a hummer all over the place.

Answer 5

Plainly stated, all companies produce pollution (VOC), these companies are only allowed to produce a certain amount of pollution before they are considered hazardous.

A company that produces less pollution can sell the left over "credits" to another company that produces more pollution than it is allowed.

So basically if you have an idea for a product and it creates a lot of pollution but you can make a lot of money at it, then by all means make your product because the over abundance of profit you pilfer from the public can be used to pay back your carbon credit bill.

It's a scam to make more money while doing nothing to help the environment.

I got into an argument with a Carbon Credit broker at a recycling conference because after he described his position to me I asked "than what do the companies really need you for, it sounds like your just making money off of something these companies could do on their own."

Opps me and my big mouth!

Answer 6

all organic compounds of the protoplasm contain corbon as corbohydrates,protiens,fats and nucleic acids.the three main sources of corbon in the living world are, 1)Co2 of the air and dissolved in H2O 2)corbonates found in the rocks of the earth's crust 3)fossil fuels such as coal and petroleum products.     Co2 is the major source of corbon for the living.so,the corbon's credits are exactly these.

Answer 7

Here's the basic and good idea.

A reduction target is set for industry.  Say they have to reduce carbon emissions by 10 units for every factory.  For some it's cheap, for some, expensive.  The guy who can do it cheaply can reduce his emissions by 15, 5 more than required.  He then sells 5 "carbon credits" to someone for who reduction is expensive, so they only have to reduce 5.

For industries it's a way of getting the desired total reduction at the lowest price to society.  A very good idea, one that was proven in reducing SO2 and solving the acid rain problem.

For individuals they're more a "feel good" thing.  There are no targets.  Unlike big companies, individuals have no way to check whether the people they're buying the credits from are doing what they say they will, efficiently.

Individuals would do better to spend their money on things they actually control.  Like better insulation, lighting, programmable thermostats, more efficient heating and cooling, more efficient transportation, etc.  They'll also save money in the long run.

Of course the idea that global warming is a scam is absurd, it's unscientific nonsense, exactly like saying NASA faked the moon landings.  But that's another subject.

Answer 8

Carbon credit, n. -- a term invented in order to camouflage a state-supported method to steal money from the munificent without objection.

Answer 9

First of all let me say the whole global warming thing is the biggest scam in history, it is the creation of polititions who want to use it to be able to raise taxes and sell americas sovernty to the united nations.

Carbon credits are the ability to buy the right to pollute.

People will buy carbon credits, and pay someone else not to pollute, so that they dont have to worry about wether or not they are polluteing.

Al gore does that.  He won the nobel prize for saying everyone shouldn't pollute, but than he is one of the biggest polluters there is, and he just pays other people not to pollute so he can go and do it himself.

It's a messed up idea.