How Carbon Credits Work

Popular Carbon Credits 1997 2005 56 39-44 Gtons Gtons 2020 KYOTO EU ETS 2°CE Curbing emissions with legally binding constraints using Carbon tax & market NOW mechanism to fight emissions. The first cap ideal projected mechanisms like JI, & trade scheme CDM and ET IF CAP IS EXCEEDED 1992 O UNFCCC • Trade with other firms having excess credits. •Trade on Europe's climate exchanges Stabilization of GHGS at levels that prevent dangerous human interference •Purchase credits from carbon reduction projects in developing Countries A cap on emissions is imposed by the states HOW EU ETS to WORKS? CO, CAP & TRADE SCHEME Oversupply Kyoto Ph-II Over 1 bn Volumes Prices Market Aviation Second largest are expected to take steps to reduce emis- sions & meet the cap. 4% decline, Expected to provide stronger price signals Rose 17% to Value of the Member agree on national Industrial €13.5/ton(2011) market grew by 11 % to 10.3 billion tons of CO2 emitter. Will be emission caps & then tonnes of CO, from €14.9/ton (2010) oversupply till 2020 included in States allocate allowances. Operators €126 bn Kyoto Phase II Emissions EU Allowances Emission Reduction Units Certified Emission Reductions