What are carbon credits?
Carbon credits are a highly accepted commercial term, used to offset or neutralize the CO2 emissions of a company. A single carbon credit represents the right to emit one metric ton of carbon dioxide or the equivalent mass of any other greenhouse gases (GHGs).
Why mainly focus on CO2?
CO2 is released in greater amount than any other greenhouse gases and represents about 50% of the total GHGs in the atmosphere. As the major contributor of global warming, any serious environmental and economic program must first address this issue. The bulk of carbon dioxide comes from generating power and moving about in fossil fuel powered vehicles. The rest comes from agricultural and other activities.
What are the other GHGs?
Some other greenhouse gases are methane, nitrous oxide, sulfur dioxide, halocarbons etc. These gases also can be expressed as CO2 equivalent so they are also traded in the carbon-trade market internationally.
Is carbon trading the solution to the greenhouse problem?
No. The ultimate solution of the greenhouse problem is to bring the CO2 and other GHGs level to or near the pre-industrial levels. Carbon trading doesn’t reduce the amount of CO2 or any other GHGs in the atmosphere rather it is dependent on human consensus to achieve desired greenhouse gas concentration and preferred climate conditions.
However, carbon trading can be considered as a part of the solution of the greenhouse problem. It allows flexibility in achieving reductions, lowering costs for a broad range of participants. This makes it more attractive for utilities, industries and individuals when considering options such as increasing efficiency, switching to renewable energy use, harvesting carbons, or conserving energy use in other ways.
How carbon trading mitigates GHG emissions?
When companies or individuals purchase carbon credits the money directly goes to the voluntary carbon market. Then the money is used to fund projects which will absorb or eliminate an amount of CO2 gas that is equal to the amount emitted. When consumers purchase carbon credits from reputable carbon offset providers, the money is used for specified projects like planting forests, which absorb carbon naturally, or diverting methane gas from livestock farms for conversion into electricity at a power plant.
Why carbon credits are traded internationally?
It is okay to trade carbon credits internationally because it mirrors the physical behavior of CO2 in the atmosphere. For instance, CO2 released into the atmosphere from California can travel to NY, England, Middle East, then Kenya, then India before it is absorbed by plants or any other living matters. In fact, it could wander locally or globally for years, decades or even centuries, before it is snared by a plant or breaks down in the atmosphere. From this perspective, the atmosphere is a pool, and you can add or subtract carbon at any point and influence the amount in the pool.
Who buys carbon credits?
There are basically two markets for trading carbon credits. They are: the compliance market and the voluntary market.
In the compliance market, companies, governments, or other entities buy carbon offsets in order to comply with regulations on the total amount of carbon dioxide they are allowed to emit. In the voluntary market, individuals, companies, or governments purchase carbon offsets to mitigate their own greenhouse gas emissions from transportation, electricity use, and other sources.
Purchasing credits earned from a verified emission reduction project can help to offset such emissions and in turn, the revenue earned from the sale of those credits helps to fund that emission reduction project.
What types of project reduces CO2 in the atmosphere?
Mainly projects involving the usage of renewable energy instead of fossil fuel or any other natural resources can help to reduce or emit carbon emissions. Such projects are:
- Reforestation and Afforestation
- Agricultural Methane Collection
- Fuel Switching
- Wind Power Plants
- Solar Power Plants
- Geological Sequestration
- Fugitive Emissions etc.
Carbon offset markets exist both under compliance schemes and as voluntary programs. Compliance markets are created and regulated by mandatory regional, national, and international carbon reduction regimes, such as the Kyoto Protocol and the European Union’s Emissions Trading Scheme. Voluntary offset markets function outside of the compliance markets and enable companies and individuals to purchase carbon offsets on a voluntary basis.
What are the project benefits?
Our program expands habitat for endangered wildlife, does Carbon Sequestration (CS) from the atmosphere, combats climate change facts, seeds clouds to cool the Earth, does nitrogen-fixing in poor soils and supports green education at a local and international level. We are committed to teaching both local people and visitors to the plantations and to our natural reserve about the benefits of conservation and good forest management. Most important of all, the more plantation wood we produce and sell in international markets, the less old growth rain forest will be cut down.
How can an individual play a role in carbon reduction?
There are many simple yet brilliant ways in which an individual can become a part of carbon reduction process. For instance, one can simply grow a vegetable garden or grow some other trees into his/her backyard, or one can simply take a walk or ride a bicycle if the distance is not so far. All these actions are eco-friendly and do have any negative impact on the environment.
How reforestation and afforestation makes money?
In 10 years the tropical trees you purchased are mature and will be harvested and the hardwood lumber sold for you at a significant profit. The international hardwood products market has seen steady growth since the 1940´s, with more people and less available wood fuelling global demand for everything from building materials to furniture and from pulp and paper to renewable biomass fuel.
What carbon credits DT Graham uses?
We only use Voluntary Carbon Standards (VCS) credits. They are premium credits coming only from projects which have been verified to a high standard. The VCS Standard quality benchmark promotes sustainable development in carbon markets and certifies real emission reductions.
If you have more questions feel free to contact us directly. Our Details contact information is given in our Contact Us page.