Wednesday, 17 April 2013

Negotiating Carbon Credits between Companies through Emerald Knight

Trading Carbon Credits through Emerald Knight Consultants

The carbon credits trading market has significantly grown worldwide since its establishment through the Kyoto Protocol of the United Nations Framework Convention on Climate Change. It is aimed at protecting the environment by setting limits on the total carbon emissions that industrial sites are allowed to produce. In this trading market, when company do not exceed it emissions cap, it can sell its remaining carbon credits to other companies that need to emit more pollutant.

About Carbon Credits

Traders in carbon credits, such as Emerald Knight carbon credits trading consultants, give investors access to leading Carbon markets in the world. A carbon credit is awarded to a company with reduction in its carbon outflow from the standard set level. The company awarded this credit can sell it, in turn, within the trading system, to another company that may need more emissions credit to fulfill its target production. A carbon-spewing company will simply have to try to work within its cap, or purchase excess credits from greener companies.

Cap and Trade System

This method of trading carbon credits is called cap and trade. The emission cap is further divided into individual emission credits. If, for instance, a state regulates the cap to a million tons of carbon per year, it may issue a million credits, each permitting a ton of greenhouse gas emission. These individual units are then what bearer companies use to sell or buy.

Emission Economy

The price of carbon credits is determined by market dynamics. If the demand for carbon credit purchase rises, so will the price to make up for the limited supply (as established and regulated by the governing body). In this light, the carbon credit market may determine the price for the right to emit carbon, thus encouraging industries to monitor their emissions to use their advantage in the carbon trading market.

State Dependent

The application of a system of mandatory carbon trading to regulate the harmful effects of industrial development will depend on the country’s political will. Some governments can opt to auction off these credit rights, or may allow self-regulation among companies trading credits in the market.

Through the carbon credits Emerald Knight consultants negotiate, new doors are opened to allow you to invest in continuing and promising projects that are designed to reduce greenhouse gas. Only through professional advisers can you make sensible purchase of carbon credits from reputable carbon offset providers.

Understanding the United Nations’ Scheme of Negotiating Carbon Credits

Understanding Emerald Knight Carbon Credits

Carbon credits serve as one of the United Nations’ answers to the besieged environment of the planet. Carbon emission, along with greenhouse gases and acid rain, is a rapidly growing threat to the environment. In keeping with the Kyoto Protocol endorsements, concerned investors have joined the call to reduce humanity’s carbon footprint. Consultants on trading in carbon credits from Emerald Knight can advice you on ethical investing in projects with real value. The two highly regulated markets for carbon credit trading are the voluntary carbon offset market and the mandatory carbon credits market. Each abides by a specific standard:

Voluntary Carbon Credit

In the voluntary carbon credit market, individuals or businesses can voluntarily purchase carbon credits to regulate their own net carbon output. The money invested is used to support eco-friendly projects that help mitigate or neutralize carbon dioxide emissions in the environment. One of the advantages of voluntary carbon credits comes in the form of Renewable Energy Certificates, which provide buyers with the opportunity to secure green power across disparate locations, as well as apply renewable energy features to their facilities. REC represents property rights that pertain to funding renewable energy development and environmental protection.

Mandatory Carbon Credit

The United Nations crafted the Kyoto Protocol to establish, among other things, the carbon credit market. It arranged to make carbon trading mandatory among nations with thriving industrial sectors. The purpose is to regulate and put a cap to harmful industrial gas emissions by target companies. A carbon credit serves like a paid-up license for a company to emit one metric tonne of carbon dioxide or equivalent greenhouse gas in the course of its business operations. If a company has an excess of credits, it can resell them to other parties that anticipate emission of more pollutant than they have already paid for. The European Union has implemented a mandatory scheme for controlling carbon dioxide emissions, with which over 12,000 factories and utility establishments across Europe have complied. Each of the EU’s member states drew up its own national allocation plan based on the Kyoto Protocol dictates. All EU member states can trade carbon credits amongst each other.

 Advice on carbon credits from Emerald Knight consultants can help companies do their part in negating their carbon-spewing ways. Moreover, they can help identify growth opportunities that can fund other sustainable and ethical projects involving rainforests, food shortages, alternative fuels, and global warming.