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Carban Credits
Carban Credits
Introduction
Present scenario
Types
Kyoto's flexible mechanism
Emission market
How buying carbon credit can reduce emission
Criticism
Role of India
What future holds
Introduction
A carbon credit is a generic term for any tradable
certificate or permit representing the right to emit
one tonne of carbon dioxide or the mass of another
green house gas .
Present scenario
Indonesia India Rest of the
China 3% 2% world
7% 3%
European Australia
Union 28%
11%
Japan
10%
united states
22%
Former Soviet
Union
14%
Fig : Carbon emission % in few business countries
south africa malaysia indonesia
1% 1% 1%
chile Qatar others
2% 1% 7%
maxico
4%
Republic of China
Korea 49%
8% brazil
9%
india
15%
Annual green house gas emission
by sector
Land use & Waste disposal &
biomass burning treatment
13% 4% Industrial
Residential,com
processes
mercial,& other
22%
13%
Transportation
fuels
18%
Agricultural
byproducts
16%
Fossil fuel
retrival,processin
g, & distribution
14%
Kyoto’s flexible mechanism
Clean International
Joint
development emission
implementation
mechanism trading
How Buying Carbon Credits Can
Reduce Emission??
Factory either
Factory Invests in new
Permissible reduces
Emissions machinery to
limit 80000 emissions or
100000 tones reduce
tones purchase
per year. emission
carbon credits
/2013 IABM 9
Criticism
Kyoto mechanism is the only internationally agreed
mechanism for regulating carbon credit activities
The Kyoto trading period only applies for five years
between 2008 and 2012.
Role of India
India is expected to rake in $100 million annually by trading
in carbon credits and Indian companies are expected to
corner at least 10 per cent of the global market in the initial
years.
According to industry estimates, Indian companies are
expected to generate at least $8.5 billion at the going rate of
$10 per tonne of CER.
India is the world’s sixth largest emitter of carbon dioxide
with its present share in global emissions estimated at 6
per cent
examples
Jindal Vijaynagar Steel
Powerguda in Andhra Pradesh
Handia Forest in Madhya Pradesh
Benefits for India
It will gain in terms of advanced technological
improvements and related foreign investments
It will contribute to the underlying theme of green
house gas reduction by adopting alternative sources of
energy
Indian companies can make profits by selling the CERs
to the developed countries to meet their emission
targets.
TRADING OF CERS: