Spectrum 7

• Karan Verma
• Komal Jadhav
• Samreen Kazi
• Priyanka Baraskar
• Shubhangi Zambre
• Akash Vijayan
• Gajendra Sonawane
 Index
• What is Carbon Credit?
• Causes of CO2 rise.
• Statistics about Carbon Credit.
• How it works?
• Why it matters now?
• Why it matters to us?
• Advantages.
• Limitations.
• Key players in Carbon trading.
• How to talk about it?
 What is Carbon Credit?
• Carbon credit is a key
component of national
& international
emissions trading
schemes that have
been implemented to
mitigate GLOBAL
WARMING. It is
better than Carbon
taxes.
 Causes of CO2 rise
• Large use of
Automobiles
• Industrial Activities
• Deforestation
Steps to be taken to reduce CO2
Carbon Credit
Statistics about the Carbon Trading

Size of global carbon credit market is
approx. $60 billions

Amount of CO2 the US traded in
2007:Nearly 23 million metric tons

Amount of CO2 the EU traded in
2007:more than 1.6 billion metric tons
 How it works?
• Kyoto Protocol-holds each country to its
own CO2 limits
• Greenhouse gas emission trading is
compulsory
• A great care is taken specially in case of
CO2 emissions
• A limit is provided to each factory & if that
factory exceeds this limit then it can take
the extra limit of the other factory on credit.
 Carbon limits given
Factory 1 Factory 2
• Max. limit provided • Max. limit provided
500 tons 500 tons
• The emission 300 • The emission 600
tons tons
• This factory can give • This factory will take
the limit to factory 2 the remaining limit of
as credit Factory 1 as credit
 Why it matters NOW?
• Carbon dioxide rise is giving huge impact
on the problem of Global Warming.
• For the future convenience of human
being to exist it is important that Carbon
credit program should be launched by the
govt.
• Carbon credit program should be launched
by the govt is not just required by the govt
but also by the consumers.
 Why it matters to Us?
• The problem of rise in CO2 is also giving
rise to the different respiratory diseases
and environmental problems which affect
Human Beings and other species of
animals.
 Advantages
• The emission of Carbon Dioxide is reduced.

• Most of the companies take it up as money

making policy.

• A step to reduce pollution.

• Help to maintain atmospheric temperature.

 Limitations
• Market.

• Illegal selling of offsets.

• Illegal declaration of companies as

“Carbon Neutral”.
 Key players in Carbon trading
• Bank of America
• British Petroleum
• The European Union Emission Trading Scheme
(EUETS)
• Gujarat Floro Chemical
• SRF limited
• Bajaj
• Renuka Sugar
• The Chicago Climate Exchange (CCX)
 How to talk about it?
• Cap-and-Trade scheme

• Free market environmentalism