Curbon Creditt

Iub : conomict nuironmentul Butinett

0ute : tz / t / tt
resenLed 8y
Abhl[eeL aLll 8oll no 13
Shoeb Momln 8oll no 12
Snehal 8adane 8oll no 16
neha arkhl 8oll no 26
v Shrlvldya 8oll no 23
vlra[ More 8oll no 07
Iummury
SHSs a HuIIut.ut
kgutu HrutucuI
Laruut Lreu.t 1rau.tg
Itu.a atu Laruut Lreu.t
Lurrett lacts !!
t und ollution
corbon
uioxide
nlLrogen
oxlde
MeLhane
1he sc|ent|f|c ev|dences show that the temperature on Larth may |ncrease by 14
S8 deg C by 2100
Sulfur
Pexafluorlde
lobal Warmlng luLure lmpacL
mittion of Curbon 0ioxide World 0uer
Aboot bolf tbe electtlclty oseJ lo tbe uolteJ 5totes comes ftom botoloq cool cbloo JepeoJs
oo cool eveo mote 8otoloq cool pots oot mote qteeoboose qoses tboo Joes ooy otbet sloqle
sootce of electtlclty
1he kyoto rotoco|
@he kyoLo roLocol ls an lnLernaLlonal agreemenL llnked Lo Lhe
unlLed naLlons lramework ConvenLlon on CllmaLe Change(unlCCC)
passed on 11 December 1997 |n kyoto Iapan but came |n force on
16 Iebruary 200S
CounLrles LhaL raLlfy Lhls proLocol commlL Lo reduce
Lhelr emlsslons of carbon d|ox|de and
flve oLher greenhouse gases or
engage ln em|ss|ons trad|ng lf Lhey malnLaln or lncrease emlsslons of Lhese
gases
kyoLo roLocol ls a volunLary LreaLy slgned by 141 counLrles
lncludlng Lhe Luropean unlon !apan and Canada for reduclng P
emlsslon by 32 below 1990 levels by 2012
1he kyoto rotoco|
ets targets for naLlons Lo reduce Lhe emlsslon of Lhe Ps
Lmp|oys severa| mechan|sms LhaL help reduce Lhe emlsslon
of Lhe Ps
@he prellmlnary phase of Lhe kyoLo roLocol ends ln 2007
whlle Lhe second phase sLarLs from 2008
@he penalLy for noncompllance ln Lhe f|rst phase |s Luro 40
per Lon of carbon dloxlde (CC2) equlvalenL ln Lhe second
phase Lhe penalLy ls h|ked to Luro 100 per Lon of CC2
CDM L@
!l
kyoLo roLocol
@he proLocol provldes Lhree mechanlsms Lo Lhe developed naLlons Lo meeL Lhe emlsslon
LargeLs
1he kyoto rotoco|
1 C|ean Deve|opment Mechan|sm (CDM)
@hls mechanlsm allows developed (or Annex 1) naLlons Lo
recelve emlsslon credlLs Lowards Lhelr own emlsslon LargeLs by
parLlclpaLlng ln cerLaln pro[ecLs ln developlng (or nonannex 1)
counLrles
@hese Clean uevelopmenL pro[ecLs musL be approved by
members of Lhe roLocol and musL conLrlbuLe Lo susLalnable
developmenL and greenhouse gas emlsslon reducLlons ln Lhe
hosL developlng counLry
kyoto rotoco| - Mechon|:m:
2 Io|nt Imp|ementat|on
@hls mechanlsm allows Annex 1 naLlons Lo recelve
emlsslon credlLs Lowards Lhelr own emlsslon LargeLs by
parLlclpaLlng ln cerLaln pro[ecLs wlLh oLher Annex 1
naLlons
@hese !olnL lmplemenLaLlon pro[ecLs musL be approved
by all naLlons parLlclpaLlng ln Lhe pro[ecL and musL
elLher reduce greenhouse gas emlsslons or conLrlbuLe
Lo enhanced greenhouse gas removal Lhrough emlsslon
slnks (le reforesLaLlon)
kyoto rotoco| - Mechon|:m:
Lm|ss|ons 1rad|ng
@hls mechanlsm allows naLlons Lo purchase emlsslon
'credlLs' from oLher counLrles
Some counLrles wlll be below Lhe emlsslon LargeLs
asslgned Lo Lhem under Lhe roLocol and as such wlll
have spare emlsslon credlLs
under Lhe emlsslons Lradlng sysLem oLher naLlons may
purchase Lhese spare credlLs and use Lhem Lowards
Lhelr own emlsslon LargeLs
kyoto rotoco| - Mechon|:m:
re)ectt uder C0M
Lnduse Lnergy Lfflclency lmprovemenLs
SupplySlde Lfflclency lmprovemenLs
8enewable Lnergy
luel SwlLchlng
AgrlculLure (CP4 and nC2 reducLlon pro[ecLs)
lndusLrlal rocess
Corbe ReductIe MecboItm
& Source A non@radlLlonal Source of 8evenue for Mlsslsslppl loresL Landowners
Carbon CredlLs
Carbon credlLs are cerLlflcaLes lssued Lo counLrles LhaL reduce Lhelr
emlsslon of P (greenhouse gases) whlch causes global warmlng
A CL8 ls glven by Lhe CuM LxecuLlve 8oard Lo pro[ecLs ln developlng
counLrles
lor example lf a pro[ecL generaLes energy uslng wlnd power lnsLead
of burnlng coal lL can save 30 Lons of carbon dloxlde per year @here
lL can clalm 30 CL8s
ldeally Carbon credlLs can essenLlally be vlewed as a means of
empowerlng Lhe markeL Lo care for Lhe envlronmenL
1 Carbon Credit
=
mettlc toooe of cO
2
ot lts epolvoleot
qteeoboose qos (CnC) wblcb ls oo eotltleJ
cettlflcote by uNlccc
MecboItmt te 7rodIg
Company A
Company 8
Carbon
@radlng
MarkeL
Carbon CredlL @radlng CuM
Lmlsslon
cap
AcLual
emlsslons
uyer
Annex I party
Carbon va|ue ()
1he CDM pro[ect reduces
the carbon em|ss|ons
|n the CDM country
Lm|ss|on
reduct|on pro[ect at non Annex I arty
Carbon Cred|ts
7be re)ect od AIIewoce 8oted Morbet
be It 8uyIgt
S9
6
11
12
2
4
4
2
unlLed klngdom
CLher Lu CounLrles
!apan
Lurope8alLlc Sea
AusLrla
Spaln
lLaly
CLhers
Jo is 5e//inq?
33
14
8
7
6
4
2
2
1
1 1
1
Chlna
lndla
8razll
CLhers
korea
Mexlco
Chlle
ArgenLlna
lndonesla
Malaysla
SouLh Afrlca
CaLar
Jor|dw|de Carbon Cred|t e|||ng Market
Corbe 7rodIg Excboget
cblcoqo cllmote xcbooqe (cblcoqo u5)
otopeoo cllmote xcbooqe (looJoo uk)
NotJ lool (Oslo Notwoy)
lowet Next (lotls ltooce)
otopeoo oetqy xcbooqe (lelpzlq Cetmooy)
Madhya Pradesh Rural Livelihoods Project, Rajasthan Renewable Energy Ltd
Blue Star Energy Services nc., Dhariwal ndustries
ndo Gulf Fertilizers Tata Power Company Limited
ndus Technical & Financial Consultants
Ltd Corporation
0A C0MAEt 7AK A0VA7AE
0A C0MAEt 7AK A0VA7AE
% lltst compooles wotlJwlJe to qet lts cotboo emlssloo
teJoctloo ptoject cettlfleJ
% ueol fot sole of lts cotboo cteJlts to tbe uk (200506 ) ooJ
wltb NetbetlooJs(200607)
u[arat I|uoro
Chem|ca|s
% 5lqoeJ o memotooJom of ooJetstooJloq (Mou) wltb tbe
Iopooese qovetomeot oqeocy NeJo fot sole of cteJlts
1ata tee|
ras|m
Industr|es
25 mlllloo oolts of cotboo cteJlts to otopeoo oqeocles fot ks
250 ctote
I
DMC
ocosbeJ tbe cotboo cteJlts lt eotoeJ ooJ ootll oow tecelveJ
ks 17 ctote by sellloq tbese cteJlts lo otope
lltst toll ptoject lo tbe wotlJ to eoto cotboo cteJlts becoose of
osloq teqeoetotlve btokloq system lo lts tollloq stock
uMkc coo oow clolm ks 12 ctote pet yeot
nd|o ond kyoto rotoco|
lndla became Lhe slgnaLory of Lhe kyoLo roLocol ln AugusL
2002
Ln[oys rovlslons for a ueveloplng CounLry
LxempLed from Lhe framework of Lhe LreaLy
AsserLlon of Lhe uS on lndla and Chlna ln Lhe Carbon MarkeL
CurrenLly an acLlve member ln Lhe currenL Lrade
dIo & Corbe CredIt Morbet
@he kyoLo proLocol allows 33 developed naLlons Lo buy carbon
credlLs from counLrles lndla ls one such counLry LhaL has
permlsslon Lo sell Lhe carbon credlLs
As on 26 March 2010 497 ouL of LoLal 2116 pro[ecLs reglsLered by
Lhe CuM LxecuLlve 8oard are from lndla whlch ls nexL only Lo
Chlna wlLh 779 pro[ecLs
Ch|na
48
Ind|a
20
Cthers
2
Cert|f|ed ro[ects
dIot etetIoI
kyoLo proLocol under whlch all Lhese carbon credlL Lradlng sLuff
Lake place LheoreLlcally ls valld only unLll 2012
@he naLlonal CuM AuLhorlLy (nCuMA) ln lndla has accorded
PosL CounLry Approval Lo 1226 pro[ecLs faclllLaLlng an
lnvesLmenL of more Lhan 8s131397 crore
lf all Lhese pro[ecLs geL reglsLered by Lhe CuM LxecuLlve 8oard
Lhey have Lhe poLenLlal Lo generaLe 373 mllllon CerLlfled
Lmlsslon 8educLlons (CL8s) by Lhe year 2012
AL a conservaLlve prlce of uS $ 10 per CL8 lL corresponds Lo an
overall lnflow of approxlmaLely uS $ 373 bllllon ln Lhe counLry
by Lhe year 2012
lndla ls expecLed Lo make ln $100 mllllon annually by Lradlng ln
carbon credlLs
Carbon CredlLs AdvanLages
1 1echno|ogy transfer from developed Lo developlng counLrles (uue
Lo low cosL sLrucLure ln developlng counLrles)
2 AddlLlonal source of fore|gn |nvestment ln developlng counLrles
whlch acL as a caLalysL ln developlng cleaner Lechnologles
3 uevelopmenL of cleaner Lechnologles leadlng Lo susLalnable
developmenL where counLrles have a strateg|c advantage from now
ln Lerms of polluLlon
4 Lnv|ronmenta| benef|ts due Lo lesser P emlsslons
1 rovlslon of cheapesL way of purchaslng cllmaLe destroy|ng r|ght
2 Comp|ex procedures lnvolved
3 CuM Llmeframe may noL asslsL longLerm developmenL sLraLegles as
Lhe Llmeframe ls foreseeable t||| 2012 on|y (MosL pro[ecLs
developed wlLh shorL Lerm perspecLlve)
4 @he developed counLrles purchase CLs rather than f|nd|ng new
ways of reduclng emlsslons by Lechnologlcal developmenL
Carbon CredlLs ulsadvanLages
1 Jor|d bank has also purchased CL8s from 10
companles
2 Accordlng Lo World 8ank esLlmaLes lndla ls
expecLed Lo rake ln 5100 m||||on annually by Lradlng
ln carbon credlLs and lndlan companles are
expecLed Lo corner aL leasL 10 per cenL of Lhe global
markeL ln Lhe lnlLlal years
3 LasL year global carbon credlL Lradlng was esLlmaLed aL $3 bllllon wlLh
Ind|as contr|but|on at around 51 b||||on
4 MCk has become flrsL exchange ln Asla Lo Lrade carbon credlLs
3 lobally greenhouse gas emlsslons are expecLed Lo come down by 23
bllllon Lonne by 2012 Accordlng Lo lndusLry esLlmaLes lndlan companles
are expecLed Lo generaLe aL leasL 58S b||||on
6 lndla has generaLed some 0 m||||on carbon cred|ts and has roughly
anoLher 140 mllllon Lo push lnLo Lhe world markeL
8lbllography
wwwcarboncredlLscom
wwwcarbonplaneLcom
wwwcdmcom
wwwcrmcom
@onk You !!!