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inShareCarbon TradingCarbon tradingmarketsenvironmental groupslaw of demandmarketsfree market environmentalismair pollutionUnited States Environmental Protection Agency'CoaseAcidRain Programcarboncap and trade pollutioncarbongreenhouseemissionsgreenhouse gascarbon dioxideequivalentChicago ClimateExchangeVoluntary CarbonStandardCDM Gold

Standard[9]Renewable energywind power solar power hydroelectric power biofuel.Renewable Energy Creditsmethaneanaerobic digester ,[29] [30]global warming potentialcarbonintensityCogenerationEnergy-efficient buildingslight bulbscompact fluorescent lampsGWPLULUCFReducing emissions from deforestation and forest degradationRegional Greenhouse Gas InitiativeEmissions Trading SchemeUNFCCCcarbon creditEuropeanUnion Emission Trading Scheme Kyoto Protocol,Certified Emission Reductions European emission allowances for the 2008-2012 second phase were selling for between21 and 24 Euros per metric ton of CO 2 as of July 2007.By creating a cap, nations make it clear that they want to reduce overall emissions, rather than just fining companies for excessive emissions or trying to force all companies toreduce their emissions by a set percentage. Cap and trade systems allow for flexibility,w h i c h u s u a l l y b e n e f i t s t h e m a r k e t . S o m e p e o p l e v i e w t h e c a p a n d t r a d e c o n c e p t a s preferable to taxation or fining system, because it is easier to administer and it results in a p o l l u t i o n r e d u c t i o n . T h e s e s y s t e m s a r e m o s t c o m m o n l y u s e d f o r carbon emissions,l e a d i n g p e o p l e t o r e f e r t o i t a s carbon trading, a n d t h e r e i s a p o t e n t i a l f o r a g l o b a l carbon trading market, in which more efficient nations could trade credits with other countries. 1.1.4 GREEN HOUSE EFFECT The greenhouse effect is a process by which thermal radiation from a planetary surface isabsorbed by atmosphericgreenhouse gases, and is re-radiated in all directions. Since partof this re-radiation is back towards the surface, energy is transferred to the surface andthe lower atmosphere. As a result, the temperature there is higher than it would be if direct heating by solar radiation were the only warming mechanism.This mechanism is fundamentally different from that of an actualgreenhouse,whichworks by isolating warm air inside the structure so that heat is not lost byconvection.The greenhouse effect is a process by which thermal radiation from a planetary surface isabsorbed by atmosphericgreenhouse gases, and is re-radiated in all directions. Since partof this re-radiation is back towards the surface, energy is transferred to the surface andthe lower atmosphere. As a result, the temperature there is higher than it would be if direct heating by solar radiation were the only warming mechanism. A greenhouse gas(sometimes abbreviated GHG) is a gas in an atmosphere thatabsorbsandemitsradiation w i t h i n t h e thermal infraredr a n g e . T h i s p r o c e s s i s t h e f u n d a m e n t a l c a u s e o f t h e greenhouse effect. T h e p r i m a r y g r e e n h o u s e g a s e s i n t h e Earth's atmospherearewater vapor ,carbon dioxide,methane,nitrous oxide, a n d ozone.I n t h e S o l a r S y s t e m , t h e atmospheres of Venus,Mars, andTitanalso contain gases that cause greenhouse effects. Greenhouse gases greatly affect the temperature of the Earth; without t h e m , E a r t h ' s surface would be on average about 33 C (59 F) [note 1] colder than at present. [2][3][4] Since the beginning of theIndustrial revolution, the burning of fossil fuels has increasedthe levels of carbon dioxide in the atmosphere from 280ppm to 390ppm.

[5][6] Unlike other pollutants, carbon dioxide emissions do not result from inefficient combustion: CO 2 is a product of ideal, stoichiometric combustion of carbon. [7] The emissions of carbon aredirectly proportional to energy consumption. 1.1.5 CARBON DIOXIDE C a r b o n d i o x i d e ( chemical formulaCO 2 ) i s a chemical compoundc o m p o s e d o f t w o oxygen atoms covalently bondedt o a s i n g l e carbona t o m . I t i s a gasatstandard temperature and pressureand exists inEarth's atmospherein this state. CO 2 is atrace gas comprising 0.039% of the atmosphere.A s p a r t o f t h e carbon cycleknown as photosynthesis, plants,algae, a n d cyan bacteria a b s o r b c a r b o n d i o x i d e , sunlight, a n d water t o p r o d u c e carbohydrateenergyfor themselves andoxygenas a waste product. By contrast, duringrespirationt h e y e m i t carbon dioxide, as do all other living things that depend either directly or indirectly on plants for food. Carbon dioxide is also generated as a by-product of combustion;emittedfromvolcanoes,hot springs, andgeysers; and freed fromcarbonate rocksbydissolution. As of October 2010,carbon dioxide in the Earth's atmosphereis at a concentration of 388 ppmbyvolume. Atmospheric concentrations of carbon dioxide fluctuate slightly with the c h a n g e o f t h e s e a s o n s , d r i v e n p r i m a r i l y b y s e a s o n a l p l a n t g r o w t h i n t h e Northern Hemisphere. C o n c e n t r a t i o n s o f c a r b o n d i o x i d e f a l l d u r i n g t h e n o r t h e r n s p r i n g a n d summer as plants consume the gas, and rise during the northern autumn and winter as plants go dormant, die and decay. Taking all this into account, the concentration of CO 2 grew by about 2 ppm in 2009. Carbon dioxide is agreenhouse gasas it transmitsvisible lightbut absorbs strongly in theinfraredandnear-infrared. As the chemically most stable noncondensing greenhouse gas, it acts as a critical 'climate control knob'.

Before the advent of human-caused release of carbon dioxide to t h e a t m o s p h e r e , concentrations tended to increase with increasing global temperatures, acting as a positive feedback f o r c h a n g e s i n d u c e d b y o t h e r p r o c e s s e s s u c h a s orbital cycles. T h e r e i s a seasonal cycle in CO 2 concentration associated primarily with the Northern Hemispheregrowing season.C a r b o n d i o x i d e h a s n o l i q u i d s t a t e a t p r e s s u r e s b e l o w 5 . 1 standard atmospheres(520kPa). At 1 atmosphere (near mean sea level pressure), the gasdepositsdirectly to a solidat temperatures below 78 C (108 F; 195.1 K) and the solidsublimesdirectly to a gasabove 78 C. In its solid state, carbon dioxide is commonly calleddry ice.CO 2 i s a n acidic oxide: an aqueous solution turnslitmusf r o m b l u e t o p i n k . I t i s t h e anhydrideof carbonic acid,an acid which is unstable in aqueous solution, from which it c a n n o t

be concentrated. In organisms carbonic acid production is catal yzed b y t h e enzyme, carbonic anhydrates. CO 2 +H 2 OH 2 CO 3 CO 2 is toxic in higher concentrations: 1% (10,000 ppm) will make some people feeldrowsy. [6] Concentrations of 7% to 10% cause dizziness, headache, visual and hearingdysfunction and unconsciousness within a few minutes to an hour. 1.1.6 CARBON TRADING SCHEME A system whereby countries or individual companies are set emission targets. Those thatcannot meet their targets can buy credit from countries or companies that bear theirs.In economics, carbon trading is a form of emissions trading that allows a country to meeti t s c a r b o n dioxide emissions reduction commitments, often to meet K yoto T r e a t y requirements, in as low a cost as possible by utilizing the free market. It is a means of privatizing the public cost or societal cost of pollution by carbon dioxide.Carbon trading is the term applied to the trading of certificates representing various waysin which carbon-related emissions reduction targets might be met. Participants in carbon trading buy and sell contractual commitments or certificates that represent specifiedamounts of carbon-related emissions that either: are allowed to be emitted; comprise reductions in emissions (new technology, energy efficienc y, r e n e w a b l e energy); or comprise offsets against emissions, such as carbon sequestration (capture of carbon in biomass).People buy and sell such products because it is the most cost-effective way to achieve anoverall reduction in the level of emissions, assuming that transaction costs involved inmarket participation are kept at reasonable levels. It is cost-effective because the entitiest h a t h a v e a c h i e v e d t h e i r o w n e m i s s i o n r e d u c t i o n t a r g e t e a s i l y w i l l b e a b l e t o c r e a t e emission reduction certificates "surplus" to their own requirements. These entities cans e l l t h o s e s u r p l u s e s t o o t h e r e n t i t i e s t h a t w o u l d i n c u r v e r y h i g h c o s t s b y s e e k i n g t o achieve their emission reduction requirement within their own business. Similarly, sellersof carbon sequestration provide entities with another alternative, namely offsetting their e m i s s i o n s against carbon sequestered in biomass. (The Carbon Trade, BBC N e w s , Thursday 20 April 2006).T h e r e a r e t w o k i n d s o f c a r b o n t r a d i n g . T h e first is emissions trading. The second istrading in project-based credits. O f t e n t h e t w o c a t e g o r i e s a r e p u t t o g e t h e r i n h y b r i d trading systems. (Carbon Trading, 2006.Made in USA-A Short History Of CarbonTrading) 1.1.7 EMISSIONS TRADING

Emissions trading is also sometimes called cap-and-trade. A cap and trade system is ane m i s s i o n s t r a d i n g s y s t e m , w h e r e t o t a l e m i s s i o n s a r e l i m i t e d o r ' c a p p e d ' . T h e K y o t o Protocol is a cap and trade system in the sense that emissions from Annex B countries arec a p p e d a n d t h a t e x c e s s p e r m i t s m i g h t b e t r a d e d . However, normally cap and trade systems will not include mechanisms such as the CDM, which will a l l o w f o r m o r e permits to enter the system, i.e. beyond the cap (Point Carbon).The targets cover emissions of the six main greenhouse gases, namely: Carbon dioxide(CO2); Methane (CH4); Nitrous oxide (N2O); Hydro fluorocarbons (HFCs); Per fluorocarbons (PFCs); and Sulphur hexafluoride (SF6)The maximum amount of emissions (measured as the equivalent in carbon dioxide) that aParty may emit over the commitment period in order to comply with its emissions targetis known as a Partys assigned amount. 1.1.8 WORLD BANK STUDY OF THE CARBON MARKET The World Bank Study for the International Emission Trading A s s o c i a t i o n ( I E T A ) indicates that the project-based emissions traded are rapidly increasing, approaching 107million tons in 2004, a 38 per cent increase over the preceding year. The share of volumeof emission reductions purchased by various countries from January 2004 to April 2005confirming that most of the CDM demand is from the EU and Japan. (United NationsConference on Trade and Development, 2006). 1.1.9 CARBON TRADING IN INDIA Carbon trading allows industries in developed countries to offset their e m i s s i o n s o f carbon dioxide by investing in reforestation and clean energy projects in developingcountries. Carbon projects could potentially recover habitat on millions of hectares of heavily populated forest and farmlands. "This would bring social, economic, and localenvironmental benefits to hundreds of thousands, and potentially millions, of poor rural people in the developing world," (David Kaimowitz, Director General of CIFOR, 2002)."Problems with forest carbon arise when trees are being grown solely for their carbon. If t h e r e a r e o t h e r e c o n o m i c u s e s o f t h e r e f o r e s t e d l a n d , s u c h a s p r o d u c i n g f u e l w o o d , rubber, fruits, and food crops, then the cost of carbon sequestration is lower. PERSONAL CARBON TRADING Personal carbon trading has been the subject of academic study for over a decade, but itIs yet to be seen as a truly viable policy. Its potential is undeniable, but this enticinglyS i m p l e i d e a h a s g r o w n i n t o a t a n g l e o f d i f f e r e n t p r o p o s a l s a n d h a s c o m e u p a g a i n s t genuine obstacles. However, where incentives to useful behavioral change by individualsremain disappointingly elusive, personal carbon trading has great potential as a policytool. Disadvantages Of Carbon Carbon is the common denominator in all-polluting gases that cause global warming.C a r b o n d i o x i d e i s t h e g a s m o s t c o m m o n l y t h o u g h t o f a s a g r e e n h o u s e g a s ; i t i s responsible for about half of the atmospheric heat retained by trace gasses. It is produced primarily by burning of fossils fuels and deforestation accompanied by burning and biodegradation of biomass. Analyses of gas trapped in polar ice samples indicate that pre-industrial levels of CO2 in the atmosphere was approximately 260

parts per million. Over the last 300 years, this level has increased to current value of around 375 ppm; most of the increase by far has taken place at an accelerating pace over the last 100 years. Abouth a l f o f t h e i n c r e a s e i n c a r b o n d i o x i d e i n t h e l a s t 3 0 0 y e a r s c a n b e a t t r i b u t e d t o deforestation, which still accounts for approximately 20% of the annual increase in thisgas. It is estimated that if the carbon increases in the atmosphere at the present rate andno positive efforts are pursued, the level of carbon in the atmosphere would go up to8 0 0 1 0 0 0 p p m b y t h e e n d o f c u r r e n t c e n t u r y , w h i c h m a y c r e a t e h a v o c f o r a l l l i v i n g creatures on earth (Current science, vol 91, No. 7,10 October 2006).Various firms scour the world in search of environmental services that could offset itsclients emissions. These services are usually forests and tree-planting projects and areknown in the business as carbon assets or carbon sinks, because trees remove carbonfrom the atmosphere and sequesters it in their wood. The activity of these sinks is oftencalled carbon sequestration. Tseming YangMichelle Labbe businesses businessMaxwell PayneBusinesses businessWendy RoltgenBusinessesTraqqer Karen Y Larkin business.D e b o r a h C o t t o n Edwin WoerdmanEric R. W. KnightJulien ChevallierBenot Chze of 28 Leave a Comment
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