CARBON CREDITS

&CARBON

FOOTPRINTS

INTRODUCTION

• CARBON CREDITS A permit that allows a country or organization to produce a certain amount of carbon emissions which can be traded if the

full allowance is not used

• CARBON FOOTPRINTS A carbon footprint is "the total set of greenhouse gases (GHG)

emissions caused by an organization, event or product" . For simplicity of reporting, it is often expressed in terms of the amount of carbon dioxide, or its equivalent of other GHGs,

emitted.

BACKGROUND

The concept of carbon credits came into existence as a result of increasing awareness of the need for pollution control.

Carbon credits were one of the outcomes of the Kyoto Protocol, an international agreement between 169 countries. The Kyoto Protocol created legally binding emission targets for developing nations. To meet these targets, nations must limit C02 emissions. It was enforced from Feb’05.

The very phase “Kyoto Protocol” has become synonymous with the idea of saving the planet from the global meltdown. This can be accomplished by either reducing emissions or by absorbing emissions through processes such as tree-planting and sequestration.

Under the Kyoto Protocol, developed countries are required to limit their greenhouse gas emissions according to the following formula:

Actual emissions must be less than or equal to the assigned amount +/- carbon sinks and Kyoto emissions.They are a measure devised by the Kyoto Protocol to reduce world Greenhouse Gas emissions, and hence fight climate change.

Carbon credits are certificates awarded to countries that are successful in reducing emissions of greenhouse gases such as water vapour, carbon dioxide, methane, nitrous oxide, and ozone.

NEED FOR CARBON CREDITS

EMITTERS RESERVOIRS

VALCANOS

INDUSTRIALIZATION

ROTTING VEGETATION

BURNING OF FOSSIL FUELS

PHOTOSYNTHESIS

OCEANS

TREES AND FORESTS

• In modern times the burning of fossil fuels like coal, oil and natural gas – in which carbon has been stored for millions of years – combined with accelerated land clearance has led to:

exceptional levels of greenhouse gas emissions enhanced greenhouse effect which will result in very rapid

warming of the world’s climate The results are likely to include intensified droughts and

floods, changed weather patterns, agricultural breakdown, ecosystem disruption, rising sea levels, epidemics, and social breakdowns that ultimately threaten the lives or

livelihoods of hundreds of millions of people

stop the increase of carbon dioxide

emissions

encourages compliance and

financial managers to pursue cost

effective emission reduction strategies

provide incentives to emitters to

develop the means by which emissions can inexpensively

be reduced.

TRADING OF CARBON CREDITS

• Buying carbon credits is not a charitable donation, but a retail action. Trade in carbon credits has the potential to

make forestry more profitable and to sustain the environment at the same time.

• One of the primary solutions for climate change being thought by global warming alarmists is the purchase and sale of carbon credits. For trading purposes, one credit is

considered equivalent to one tonne of CO2 emissions. Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market

price

VALUE OF CARBON CREDITS

• Carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting

the air• Carbon credits are measured in tonnes of carbon dioxide.

1 credit = 1 tonne of CO2.

Each carbon credit represents one metric ton of C02 either removed from the atmosphere or saved from being emitted.

• The carbon credit market creates a monetary value for carbon credits and allows the credits to be traded.

• For each tonne of carbon dioxide that is saved or sequestered carbon credit producers may sell one carbon credit.

GENERATION OF CARBON CREDITS Many types of activities can generate carbon offsets.

• Renewable energy such as wind farms orinstallations of solar, small hydro, geothermal, and biomass

energy • Other types of offsets available for sale on the market

include those resulting from energy efficiency projects, methane capture from landfills or livestock, destruction of potent greenhouse gases such as halocarbons, and carbon sequestration projects (such as reforestation) that absorb

carbon dioxide from the atmosphere.

CARBON FOOTPRINTS

• carbon footprint is a measure of the impact our

activities have on the environment, and in

particular climate change. It relates to the amount of

greenhouse gases produced in our day-to-day lives

through burning fossil fuels for electricity, heating and

transportation etc.

• as calculating the total carbon footprint is impossible due to the large amount of data required

• Wright, Kemp, and Williams define it as , “A measure of the total amount of carbon dioxide (CO2) and methane (CH4) 

emissions of a defined population, system or activity, considering all relevant sources, sinks and storage within

the spatial and temporal boundary of the population, system or activity of interest”.

• Calculated as carbon dioxide equivalent (CO2e) using the relevant 100-year global warming potential(GWP100 )

• Once the size of a carbon footprint is known, a strategy can be devised to reduce it, e.g. by technological developments,

better process and product management, changed Green Public or Private Procurement (GPP), carbon capture,

consumption strategies, and others.• The mitigation of carbon footprints through the

development of alternative projects, such as solar or wind energy or reforestation, represents one way of reducing a carbon footprint and is often known as Carbon offsetting

NEWS ARTICLES

Adani Power's Mundra plant to earn Rs 600 crore

in carbon creditsAdani Group announced that the phase III of its power plant in Mundra, Gujarat, consisting of two units of 660 MW each, has received carbon credits under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC).

This achievement makes the Mundra plant the world's first coal fired power project to receive carbon credits. With this measure,

The plant is expected to generate about 1.8 million Certified Emission Reductions (CERs) each year. Adani Power is expected to earn Rs 600 crore by trading these carbon credits during the first 10 years of its operations.

Solid Solar signs MOU with Bank of India to facilitate financing of

solar systemsSolid Solar by Gautam Polymers, India's largest solar lights manufacturer with Bank of India for financing of solar systems through its network of banks across the country.

This MOU would enable bank financing on solid solar home systems and solar power plants through bank of India's extensive network and popularise the usage in rural and urban areas.

The recent Northern Power Grid failure and rising diesel costs has given rise to a growing demand of renewable energy sources as power backup.

Get discounts on branded goods by slashing carbon footprint

• We now can get hefty discounts on trendy apparel and other major branded goods . Following international trends, stores in India are waking up to 'carbon neutral' stores in which customers are able to redeem "credits" accumulated through the purchase of environment friendly products for discounts.

Woodland is all set to go "carbon neutral" in 80 of its stores in

Delhi-NCR and Karnataka• Being carbon neutral means

having a net zero carbon footprint, or achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount offset, or buying enough carbon credits (tradable certificate or permit representing the right to emit 1 tonne of CO2) to make up the difference.

United Nations Framework Convention on Climate Change issues carbon credit to ONGC

• The World's number 2 exploration & production company ONGC is scoring well on environment performance as well. The United Nations body on Climate Change (UNFCCC - United Nations Framework Convention on Climate Change) has issued a massive kitty of 121,207 carbon credits to ONGC's 51 Megawatt Wind Power project at Bhuj (Gujarat), on 7th June 2012. This is the first issuance of credits from this project

SUMMARY

A non-binding target has been given to India to cut its emission intensity by 20-25% by 2020. This does not include agriculture. To meet this target and to adapt to climate change without sacrificing growth, India has articulated the National Action Plan for Climate Change (NAPCC) with eight programmes

DID YOU KNOW ? ? ?About 65% of Indian population depends directly on agriculture and it accounts for around 22% of GDP.Agriculture derives its importance from the fact that it has vital supply and demand links with the manufacturing sector

PROBLEM AREAS

• Faster growth will raise energy demand by about five times, from 725 billion units now to 3,600 billion units by 2030

• Energy is the biggest polluter, contributing greenhouse gas emissions (58%) industry (22%) agriculture (18%) Within energy, power generation by thermal stations is the

worst polluter Land use, land use changes and forestry (LULUCF) is a net sink

that sequesters carbon

• Within agriculture, livestock is the largest contributor of greenhouse gas emissions (63%), followed by paddy cultivation (21%). Agriculture contributes 90% to nitrous oxide emissions from fertiliser and irrigated paddycultivation.

SOLUTIONS

We can cut farm emissions in many ways.• One, by changing paddy cultivation practices by intermittent

drying, direct seeded rice and so on.• Two, changing livestock breeds or feeding practices with feed

additives. • Three, through conservation agriculture.• And, four, site-specific use of nitrogen and nitrification

additives.

IN MY OPINION !!!

• Livestock is still a household activity, so there is little one can do to cut their emissions, but major reductions can come from shifts in paddy cultivation practices and cropping systems in Punjab, Haryana and southern India. This will require large-scale extension work, possibly through a tripartite agreement between farmer groups, state extension agencies and the private sector engaged in extension