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| Carbon Credit Certificate |
Hi all!
Carbon credit is a ‘Certificate’ showing that a government or company has paid to have a certain amount of carbon dioxide removed from the environment.
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| Carbon Credit Business Mechnism |
In simple words, suppose a factory emits 1,00,000
tonnes of CO2 per annum in the Environment.
But, because of the Governmental restrictions, the
emission limit for this factory is determined as 80,000 tonnes per annum. In
this case, that factory has two options.
1. Either to shut down some units
completely & bring down emissions, or
2. Purchase the ‘Carbon Credits’ from the company
like us.
Obviously, any company will choose to go for the
second option.
That Factory can purchase 20,000 Carbon Credits
from us, now. & in future also, whenever they think about the facility
expansion, they can ask us for more credits.
1 Carbon Unit= 1 metric tonne of CO2 emitted/
absorbed, in/from the Environment.
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| Renewable Energy sources |
For Company like us, to produce a Carbon Unit, we
need to undergo the following Practices, to absorb the certain amount of the
CO2, from the environment.
1.
Reforestation
2.
Solar power Generation
3.
Wind Power Generation
4.
Bio Mass/ Bio Fuel, Etc.
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| Conversion of Barren Land to Evergreen Forests |
Right now, the Company will
concentrate on,
Reforestation. The Company will purchase, barren lands & do large scale
plantations there.
The amount of the CO2 absorbed by these trees will
be calculated by the independent authorities, like National CDM Authority
(NCDMA).
Once approved, these Carbon Credits, can be kept
for sale.
Future of Carbon Credit Sales
Currently there are five exchanges trading in
carbon allowances: the European Climate Exchange, NASDAQ OMX Commodities
Europe, PowerNext, Commodity Exchange Bratislava and the European Energy
Exchange.
Managing emissions is one of the fastest-growing
segments in financial services in the City of London with a market estimated to
be worth about €30 billion in 2007. Louis Redshaw, head of environmental
markets at Barclays Capital predicts that "Carbon will be the world's
biggest commodity market, and it could become the world's biggest market
overall.”
