Friday, 29 March 2013

The Kyoto Protocol and Basics of Trading Emerald Knight Carbon Credits

The Kyoto Protocol and Basics of Trading Emerald Knight Carbon Credits

The year 1997 was a landmark year for environmentalists. This was the year that the Kyoto Protocol, an agreement that promotes environmental consciousness and pollution control, was signed by industrialized nations. This agreement was the first of its kind and required signatories to abide by set provisions for pollution control. Here is a quick introduction to the agreement and how it affects the trading of Emerald Knight carbon credits.

What is the Kyoto Protocol?

Just like going on a diet, nations that signed the agreement committed to reducing their greenhouse gas emissions to 5% below their 1990 levels. They were to accomplish this within four years, from 2008-2012. During a talk on climate change in Doha, Qatar, this commitment from members of the Protocol has been extended to another seven years, from 2013-2020. There are several methods through which countries can meet their gas emission reduction commitments. One of these is carbon credit trading.

Earning and Trading Carbon Credits

This method works on the basic premise that a country offsets the harmful effects of its carbon dioxide emissions by adopting environmentally sound practices. If their emissions are lower than the set limit, they earn a carbon credit. For corporations, each credit earned allows them to emit one metric ton of carbon dioxide. Emissions can be reduced by planting trees in the forest to create carbon sinks, or enforce policies and work practices that reduce the carbon footprint of corporations and their employees.
Some countries have very little emissions, so they earn a lot of carbon credits. Signatories which need these carbon credits may purchase them from less developed countries. In return, this money will be used to sponsor research on environment-friendly technology that can be used in developing countries.
The reality is that implementing environmentally sound practices isn’t cost-effective in all countries. This is why the Kyoto Protocol allows countries to trade emission allowances. Through this, the reduction of emissions is maximized in countries where it is most economically efficient to do so.

Carbon Credit Investments

There are several benefits of putting money towards carbon credit investments through companies like Emerald Knight. By investing in Emerald Knight carbon credits, investors can earn while helping mitigate climate change. Not only does this help in addressing environmental concerns, but also allows developing countries in economic transition achieve sustainable development.

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