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.

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