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 !!!