What is carbon trading? Who can trade? what are the necessary criteria for carbon trading?

Question

What is carbon trading? Who can trade? what are the necessary criteria for carbon trading?

Answer 1

In simple terms Carbon Trading works like this.

Consider you are running a company and your carbon emission is 100 gms per day. Now say you have reduced your carbon emissions to 60gms per day, which means you have cut down emissions by 40 gms per day.

Now you can sell this 40 gms to industries which emit carbon. You can get money or anything for selling your carbon credits (that 40 gms).

But I don't think this system works in India. This system is more followed in UK and other countries.

http://www.carbonfund.org

http://www.carbontrading.com

Answer 2

A scheme to enable polluters to keep polluting while trading companies make a tidy profit.

Simply put, it's the 21st century shell game.

Answer 3

This has to be the biggest scam ever devised and worst of all, it's legal. As I understand it, if my car produces two ton of carbon a year and I pay someone who is growing trees a sum of money, that makes me carbon neutral. What a load of rubbish. Companies who have to pay a carbon tax will weigh up whether to continue polluting and pay or clean up their act. If cleaning up costs more than dumping staff then staff will go so they can pay and keep their profits at the same level.

How is anyone going to calculate how much carbon a tree consumes in a year? It wouldn't be the same every year. A tree must consume carbon while it's growing and that changes year by year. You only have to look at the growth rings after you cut it down to see they are different.

Answer 4

This should help you!

http://en.wikipedia.org/wiki/Personal_ca...

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Answer 5

Carbon Trading is a market based mechanism for helping mitigate the increase of CO2 in the atmosphere.  Carbon trading markets are developing that bring buyers and sellers of carbon credits together with standardized rules of trade.

Who are potential buyers for Carbon credits?

Any entity, typically a business, that emits CO2 to the atmosphere may have an interest or may be required by law to balance their emissions through mechanism of Carbon sequestration.   These businesses may include power generating facilities or many kinds of manufacturers.  



Who are potential sellers of Carbon credits?

Entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils.  Similarly, business entities that reduce their carbon emission may be able to sell their reductions to other emitters.