How It Works

With the rapid growth of industries, environment especially air pollution has also increased at a massive rate. So now governments and other corresponding bodies are very much aware to protect the global environment. They have set up a certain set of regulation for that. But emission limits and trading rules vary from country to country. So each emission-trading market operates differently. For instance, the nations that have signed the Kyoto Protocol, GHG emissions trading is mandatory for them.

Unlike carbon trading, offsetting isn’t yet government regulated in most of the countries. In most cases, buyers determine a projects environmental worth. The standard rule states, for every ton of carbon dioxide released, a company can buy certificates attesting that the same amount of greenhouse gas was removed from the atmosphere through renewable energy projects such as tree planting.

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