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Carbon Credit
Carbon Credit
Abhijeet Patil Shoeb Momin Snehal Badane Neha Parkhi V. Shrividya Viraj More
Presented By: Roll No. 15 Roll No. 12 Roll No. 16 Roll No. 26 Roll No. 25 Roll No. 07
Summary
GHGs & Pollution
Kyoto Protocol
Carbon Credit Trading India and Carbon Credit Current Facts !!
Carbon Dioxide
Sulfur Hexafluoride
Methane
The scientific evidences show that the temperature on Earth may increase by 1.45.8 deg. C. by 2100
About half the electricity used in the United States comes from burning coal. China depends on coal even more. Burning coal puts out more greenhouse gases than does any other single source of electricity.
Kyoto Protocol is a voluntary treaty signed by 141 countries, including the European Union, Japan and Canada for reducing GHG emission by 5.2% below 1990 levels by 2012.
Kyoto Protocol
CDM JI
ET
This mechanism allows developed (or Annex 1) nations to receive emission credits towards their own emission targets by participating in certain projects in developing (or Non-annex 1) countries.
These Clean Development projects must be approved by members of the Protocol and must contribute to sustainable development and greenhouse gas emission reductions in the host developing country.
Carbon Credits
Carbon credits are certificates issued to countries that reduce their emission of GHG (greenhouse gases) which causes global warming A CER is given by the CDM Executive Board to projects in developing countries. For example, if a project generates energy using wind power instead of burning coal, it can save 50 tons of carbon dioxide per year. There it can claim 50 CERs Ideally, Carbon credits can essentially be viewed as a means of empowering the market to care for the environment.
Mechanisms to Trading
Carbon Trading Market
Company B Company A
The CDM project reduces the carbon emissions in the CDM country
Emission cap
Actual emissions
Buyer
Carbon value ()
Who is Buying?
United Kingdom
59%
6% 11% 12% 4% 4% 2% 2%
Who is Selling?
Worldwide Carbon Credit Selling Market
China
India
14%
Brazil Others
8%
53%
Korea
7%
Mexico Chile
6% 2% 2% 4%
Argentina
Indonesia Malaysia South Africa
1%
1% 1% 1%
Qatar
Madhya Pradesh Rural Livelihoods Project, Blue Star Energy Services Inc., Indo Gulf Fertilizers Indus Technical & Financial Consultants Ltd Corporation
Rajasthan Renewable Energy Ltd Dhariwal Industries Tata Power Company Limited
SRF
DMRC
First rail project in the world to earn carbon credits because of using regenerative braking system in its rolling stock. DMRC can now claim Rs 1.2 crore per year
China 48%
Indias Potential
Kyoto protocol, under which all these carbon credit trading stuff take place, theoretically, is valid only until 2012 The National CDM Authority (NCDMA) in India has accorded Host Country Approval to 1226 projects facilitating an investment of more than Rs.151,397 crore If all these projects get registered by the CDM Executive Board, they have the potential to generate 573 million Certified Emission Reductions (CERs) by the year 2012 At a conservative price of US $ 10 per CER, it corresponds to an overall inflow of approximately US $ 5.73 billion in the country by the year 2012 India is expected to make in $100 million annually by trading in carbon credits.
1. 2.
World bank has also purchased CERs from 10 companies. According to World Bank estimates, India is expected to rake in $100 million annually by trading in carbon credits and Indian companies are expected to corner at least 10 per cent of the global market in the initial years. Last year global carbon credit trading was estimated at $5 billion, with India's contribution at around $1 billion. MCX has become first exchange in Asia to trade carbon credits. Globally, greenhouse gas emissions are expected to come down by 2.5 billion tonne by 2012. According to industry estimates, Indian companies are expected to generate at least $8.5 billion India has generated some 30 million carbon credits and has roughly another 140 million to push into the world market.
3. 4. 5.
6.
Bibliography
www.carboncredits.com www.carbonplanet.com www.cdm.com www.crm.com