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DEMYSTIFYING CARBON CREDITS
EFFECTS OF CLIMATE CHANGE
Change in the temperature,
Cyclones & Extreme Weather
Melting of the Ice
Rise in Sea level
Heat related illness and deaths
Reduction in crop yields
CARBON CREDITS
WHAT ITS’ ABOUT..
Emission trading approach
Carbon Footprints
Carbon Offsetting
Two Types of carbon credits -: Carbon Offset Credits and
Carbon Reduction credits.
CARBON CREDIT CERTIFICATE
WHY WE NEED IT…
Helps Capping total annual emissions
Assigns a monetary value to the carbon emitted
Gives business and economic incentives to Organization
who reduce emission.
Necessitates adoption of clean technologies by the
developed nations .
Helps developing nations get foreign investment for
developing advanced clean technologies .
CARBON CREDITS
CARBON MARKETS 3 PRINCIPAL REGIMES
Kyoto Mandatory Regime
UNFCCC
KYOTO PROTOCOL
Non Kyoto Mandatory Regime
New South Wales (Aus)
Individual US States (East coast, California, Oregon)
European Union Trading scheme
(EU-ETS)
Voluntary Regimes
Chicago Climate Exchange (CCX)
Retail Market
Source : UNFCCC Site
1992• UNFCCC
establishes Framework
1997• Treaty
negotiated in Kyoto (Japan)
• Opened for signature
2005• Agreement
Came into Existence
KYOTO: BACKGROUND
183 Countries ratified as of Jan 2009
This represents about 64% of industrialized
country emissions
Developed countries have a target to reduce GHG
emissions by 5.2%
India, China, and Brazil are classified as emerging
countries and hence exempted from this protocol
KYOTO PROTOCOL
UNFCC Kyoto Protocol
Project Based
Clean Development
Mechanism
Joint Implement
ation
Allowance Based
International Emission Trading
KP MECHANISMS
Clean Development Mechanism
34%
26%10%
7%
3%
2% 18%
CDM Project Statistics
ChinaIndiaBrazilMexicoMalaysiaChileOthers
Sales of CER from Developing to Developed country
Certified Emission Reductions (CER)
1430 Registered projects reducing 550 Mton CO2
Source : UNFCCC Site
JOINT IMPLEMENTATION
One industrialised country to another
Emission Reduction Units (ERU)
203 Projects reducing 21 Mton CO2
48%
16%7%
5%
5%5%
4% 10%
JI Project Statistics
RussiaUkraineBulgariaHungaryPolandLithuniaGermanyOthers
Source : UNFCCC Site
Cap and Trade
Assigned Amount Units (AAU)
EU ETS, UK ETS, CCX
International Emissions Trading
Businesses that don’t reduce emissions enough must buy creditsMONEY
CREDITS
GHG emission cap (set by authorities)
Cap is lowered over time
The European Union Emission Trading Scheme is the largest under Kyoto
PROJECT BASED TRANSACTIONS
Source : UNFCCC Site
CARBON CREDIT MARKET IN INDIA
Signed and ratified the Protocol in August, 2002
Second largest seller of carbon credits after China.
Carbon credits traded on MCX in India.
Major players of carbon credits – Torrent Power AEC,
Gujarat Fluro Chemicals and Jaypee Associates
engaged in energy efficiency and gas capture.
AREAS OF CONCERN
The major polluters apart from industrial wastes are:
Paddy fields
Enteric fermentation from cattle and buffaloes
Municipal Solid Waste
The above issues can be addressed by:
Development of special irrigation strategies and technologies
Proper feed management of cattle
Segregation of wastes and production of clean fuel
DRAWBACKS OF CARBON CREDITS
Excuses the emission of carbon rather than reducing it.
Form of privatization of the atmospheric commons .
Creates transferable rights to dump carbon in the
environment and vegetation far in excess of the capacity
of these systems to hold it
OUR SOCIAL RESPONSIBILITY
Replacing five incandescent bulbs that you use for five hours a day with CFLs reduces carbon emissions by about 250kg CO2/yr.
Switching off just five 60W lights in your home saves about 270kg CO2/yr.
Drying clothes on a line instead of a tumble drying saves 280kg of CO2/yr.
Turning off the tap while brushing teeth saves about 3kg of CO2/yr.
Fixing a dripping tap saves about 20kg of CO2/yr.
THANK YOU !!!