Wednesday, 17 April 2013

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.

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