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Salalah college of Technology

Name Student:

Teacher Name: Engr. SM Iqbal

Introduction
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Keyboard
It is widely believed that stabilization of
atmospheric concentrations of greenhouse
gases GTC) at around 450 parts per million by
volume (ppmv) would lead to about 2oC
warming which is considered as relatively
less dangerous.

Carbon trading issue

Cap and trade is one of the main forms of
emissions trading . Under cap and trade
schemes, governments or intergovernmental
bodies set an overall legal limit on greenhouse
gas emissions in a certain time period and
then grant industries a certain number of
licenses to pollute.

CAP and Trade process

A cap and trade system is a means by which
reductions in greenhouse gas (GHG) emissions
can be implemented. It involves creating a market
where GHG emission allowances can be bought
and sold by entities , better facilitating the
reduction of GHGs in a way that prevents
inflexible limitations on economic activity.

.Cont
Under a scheme called cap and trade,
governments or intergovernmental bodies like the
European Commission hand out licenses to pollute
(or carbon permits) to major industries. Instead
of cleaning up its act, one polluter can then trade
these permits with an-other who might make
equivalent changes more cheaply.

Process Explanation and implementation

To understand the logic behind carbon trading it

is useful to first describe the notion of
marginal abatement cost (MAC). The
marginal abatement cost (MAC) is the cost
of reducing pollution (say, carbon
emissions) by an 3 additional unit.

Cont

The allowable emission units are then

distributed across polluters in the form of
permits. The polluters are allowed to
exchange these permits. A polluter will carry
out the abatement as long as the cost of
abatement is lower than the cost of
purchasing a permit.

Response of other countries

Under the Kyoto Protocol the polluters are
countries that have agreed to targets for
reducing their greenhouse gas emissions
below their country-specific target in a predefined timeframe.

Cont

1. If the polluter does not use its entire

allowance, it can either save the remaining
permits for the next time period (bank them),
or sell then to another polluter on the market.

2. If the polluter uses up its allowance in the

allotted time period, but pollutes more, it
must buy permits from another polluter that
has not used up its full allowance.

Effects on controlling carbon trading

Another way to reduce carbon dioxide emissions

is to use carbon-free or reduced-carbon sources

of energy. Carbon-free sources of energy have
their own associated impacts, but in general,
these technologies generate energy without
producing and emitting carbon dioxide to the
atmosphere.

Problems faced in carbon trading

Europe's carbon market is in deep trouble and it's not
just environmentalists sounding the alarm. Back in
April, the CEO of Shell said that the European Union's
system for trading allowances for the emission of
greenhouse gases was "in danger." But that's about as
direct as anyone will get in this world of bureaucratese.

Future of Carbon trading

We are now at a very different place than we were

fifteen years ago. In the late 1990s, most intellectual
and stakeholder debate focused on a single global
trading program being designed as the vehicle to
address global climate change. The key issues were
the design of that program. Today, that form of topdown global program seems away, if not impossible.
Instead, we see a multiplicity of national and even
sub-national trading programs emerging far.

In the End I will thanks to you all to see my

presentation. Hope you like its, thank you.