Report on Carbon footprints

8/8/2019 Report on Carbon footprints

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Carbon footprints and carbon credits

Institute of Chemical Technology, Mumbai

Department of

Fibers and Textile Processing Technology

Carbon Footprints and Carbon Credits

Project II Report submitted in Partial Fulfillment

of the Requirements for the Award of the Degree of

Master of Fibers and Textile Processing Technology

by

Munish Arora

Department of Fibers and Textile Processing Technology

Institute of Chemical Technology

Mumbai-400019

Maharashtra, India

November 2010

Institute of Chemical Technology,Mumbai Page 1


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Table of Contents

INDEX PAGE NO.

CHAPTER 1 : INTRODUCTION

1.1 Global warming 1

1.2 Effect on temperature 1

CHAPTER 2 : LITERATURE SURVEY

2.1 Carbon footprint

2.1.1 Types of carbon footprints

2.1.2 Greenhouse gas emission classification

2.1.3 Breakdown of a carbon footprint

3

4

6

2.2 Why calculate a carbon footprint ? 7

2.3 Calculating a carbon footprint 8

2.4 Develop and implement a carbon management strategy 13

2.5 Glossary 13

2.6 Carbon credits 18

2.6.1 Background

2.6.2 How buying carbon credits can reduce emissions

2.6.3 Credits versus taxes

2.6.4 Additionality and Its Importance

2.6.5 Carbon credit in India

18

19

19

2020

CHAPTER 4 : CONCLUSION 21

CHAPTER 4 : REFERENCES 22

1. INTRODUCTION

Climate change is increasingly recognised as a major challenge. It is widely accepted that the

greenhouse gas emissions caused by humans are having a negative impact on the environment.

The most important greenhouse gas, arising from human activity, is carbon dioxide (CO2).1

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1.1 Global Warming

Virtually all human activities cause the CO2 emissions that lead to climate change and give rise

to the term Global Warming. Global warming is the name given by the scientists for the gradual

increase in temperature of the Earths surface that has worsened since the industrial revolution.

By using electricity generated from fossil fuel power stations, burning gas for heating or driving

a petrol or diesel car, every person is responsible for CO2 emissions2,3. These products and

services may also cause emissions of other greenhouse gases .

1.2 Effect on temperature

For the last 40 years it has been observed that there is a large departure of temperature from the

value it was before. Figure 14 shows this significant change very well for northern hemisphere.

Figure 1

Figure 2 shows the departure of temperature from 1961 to 1990 globally and the difference is

much significan5

.



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Figure 2

This clearly shows that the global warming resulted out in the form of rise in temperature in the

past years and it continuously producing adverse effects on nature.

The total set of greenhouse gas emissions caused directly and indirectly by an individual,organisation, event or product is commonly called their carbon footprint1 Establishing the

carbon footprint of an organisation can be the first step in a programme to reduce the emissions it

causes.

2.LITERATURE SURVEY



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2.1 Carbon footprint

The term carbon footprint is commonly used to describe the total amount of CO2 and other

greenhouse gas (GHG) emissions for which an individual or organization is responsible.Footprints can also be calculated for events or products. The full footprint of an organization

encompasses a wide range of emissions sources from direct use of fuels to indirect impacts such

as employee travel or emissions from other organizations up and down the supply chain. When

calculating an organizations footprint it is important to try and quantify as full a range of

emissions sources as possible in order to provide a complete picture of the organizations

impact.5,6,7

2.1.1 Types of carbon footprints

The figure 3 shows the different types of carbon footprints. In this figure the boundaries have

been made which tells the role of various participants in carbon footprint4.

Figure 3



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In order to produce a reliable footprint, it is important to follow a structured process and to

classify all the possible sources of emissions thoroughly. A common classification is to group

and report on emissions by the level of control which an organization has over them. On this

basis,classification of greenhouse gas emission can be done.

2.1.2Greenhouse gas emissions classification:

Figure 35 very well classifies the greenhouse gases emissions into three categories. The various

categories are:

i. Direct emissions that result from activities the organisation controls

ii. Indirect emissions from the use of electricity

iii. Indirect emissions from products and services

Figure 3



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i. Direct emissions that result from activities the organisation controls

Most commonly, direct emissions will result from combustion of fuels which produce CO2

emissions, for example the gas used to provide hot water for the workspace. In addition, some

organisations will directly emit other greenhouse gases. For example, the manufacture of some

chemicals produces methane (CH4) and the use of fertilizer leads to nitrous oxide (N2O)

emissions.

ii. Indirect emissions from the use of electricity

Workplaces generally use electricity for lighting and equipment. Electricity generation comes

from a range of sources, including nuclear and renewables. However, in the UK around 75% isproduced through the combustion of fossil fuels. Although the organisation is not directly in

control of the emissions, by purchasing the electricity it is indirectly responsible for the release

of CO2.

iii. Indirect emissions from products and services

Each product or service that is purchased by an organization is responsible for emissions. So the

way the organization uses products and services affects its carbon footprint. For example, a

company that manufactures a product is indirectly responsible for the carbon that is emitted in

the preparation and transport of the raw materials. Downstream emissions from the use and

disposal of products can also be indirectly attributed to the organisation.

It is clear, therefore, that producing a full footprint covering all three types of emissions can be

quite a complex task. A further complexity in understanding published footprints is that they are

rarely comparable for the following reasons:

Despite emerging international standards not all organisations follow the same approach

to calculating their footprint or classify their emissions in the same way



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Some footprints are expressed on a time period basis, such as the footprints of an individual or

company which are typically measured annually. Others are expressed on a unit basis, such as

per event or product purchased

Carbon footprints are typically calculated to include all greenhouse gases and are expressed in

tonnes of CO2 equivalent (tCO2e). However, others calculate the footprint to include CO2 only

and express the footprint in tCO2 (tonnes of CO2).

The reasons for needing a carbon footprint will determine which approach is the most

appropriate. In some cases it may be possible to do a basic footprint in others a much more

rigorous process will be required.

2.1.3 Constituents of a carbon footprints

.

Figure 4. A typical persons carbon footprints chart.

Figure 4 showing a chart which is very well helpful in understanding of the footprints in daily

routine7 Like, this charts shows the role of each and every human activity and its corresponding

carbon footprint. The major role is played by coal and oil gas, Recreation and leisure, electricity

and private transport.



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2.2 Why calculate a carbon footprint?

There are typically two main reasons behind the calculation of a carbon footprint3,4

To manage the footprint and reduce emissions over time.

To report the footprint accurately to a third party.

2.2.1 Footprinting for management of emissions

Calculating an organisations carbon footprint can be an effective tool for ongoing energy and

environmental management. If this is the main reason that an organisation requires a carbon

footprint, it is generally enough to understand and quantify the key emissions sources through a

basic process, typically including gas, electricity and transport. This approach is relatively quick

and straightforward.

Having quantified the emissions, opportunities for reduction can be identified and prioritized,

focusing on the areas of greatest savings potential.

2.2.2 Foot printing for accurate reporting

Organisations increasingly want to calculate their carbon footprint in detail for public disclosure

in a variety of contexts:

For CSR or marketing purposes

To fulfill requests from business or retail customers, or from investors

To ascertain what level of emissions they need to offset in order to become carbon neutral.

For these purposes, a more robust approach is needed, covering the full range of emissions for

which the organisation is responsible. It may also be appropriate for the calculation to be

independently verified to ensure that the methodology has been correctly used and that the

results are accurate.



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2.3 Calculating a carbon footprint

2.3.1 A basic approach

For most organisations, calculation of a basic carbon footprint is a fairly quick exercise. A basic

footprint is likely to cover direct emissions and emissions from electricity as these are the

simplest to manage, but exclude some of the indirect emissions14,3

There are usually a handful of major emissions sources that must be quantified, including:

Onsite fuel usage

Onsite electricity usage

Use of transport which you own.

To get the key information to calculate a basic carbon footprint, collect data from all utility

meters and record the distances travelled by the organisations vehicles. Convert the fuel,

electricity and transport consumption figures to CO2 by using the standard emissions factors,

which are published by Defra and reproduced on the Carbon Trust website, together with advice

on how to undertake the calculation.

When calculating a basic carbon footprint it is common to exclude sources of indirect emissionswhich your organization does not control, for example emissions from waste, from the supply

chain or from employee travel on public transport or airlines.

Once the basic carbon footprint has been established, it is then possible to take steps to manage

the emissions:

Set and agree efficiency or emissions reduction targets

Identify likely opportunities for efficiency or emissions reduction

Prioritise the opportunities, based on environmental or financial criteria

Take action to implement the opportunities

Monitor the performance of the actions taken and improve as necessary.



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2.3.2 Producing a full carbon footprint

Accurate calculation of your carbon footprint requires a more detailed approach and may require

specialist advice.

The five steps below show a systematic approach, suitable for producing an accurate carbon

footprint6,11

i. Define the methodology

ii. Specify the boundary and scope of coverage

iii. Collect emissions data and calculate the footprint

iv. Verify results (optional)

v. Disclose the footprint (optional).

i. Define the methodology

For a footprint to be accurate there must be a consistent approach, which is why it is important to

define the organisations methodology from the outset. This also ensures that when issues arise

they can be dealt with systematically. A consistent methodology is particularly important in a

large organisation which depends on many individuals to help collect and interpret data. Some

organisations choose to define their own approach for carbon footprinting. However, it is usually

quicker and better to use a methodology that is already widely accepted and understood. The

results may be seen to be more credible, and can be compared with other organizations using the

same methodology.

One commonly used methodology is the GHG Protocol produced by the World Resources

Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). This

methodology provides detailed guidance on corporate emissions reporting and is available free of

charge online. A more recent standard from the International Organization for Standardization,

ISO 14064, also provides guidance on corporate footprint calculation and emissions reporting. It

builds on many of the concepts introduced by the GHG Protocol; both provide explanations of

the steps covered here.



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ii. Specify the boundary and scope of coverage

Be clear about which set of emissions will be quantified. This is commonly referred to as

defining your boundary. Common issues include:

Treatment of emissions from wholly or partially owned subsidiaries

Treatment of emissions from leased assets, such as from a van which is leased from a hire

company.

Specifying a boundary means to consider a particular area for the calculation of the carbon foot

prints. As figure 5 shows the different boundary line for a particular part to be taken under

consideration. It gives a confined area for the calculation of carbon foot print as like carbon

footprint for the whole oraganisation, for a few processes, for the cradle used etc.

Figure 5



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It is usual to define the boundary to include the full range of emissions that the organisation

controls directly and this is likely to include subsidiaries and leased assets. Established

methodologies such as the GHG Protocol provide rules for allocation of the emissions to the

organisation.

Having defined the boundary, consider what types of emissions will be included. Keep the

following points in mind

CO2 only or all greenhouse gases?

Direct emissions from fuel use onsite and from transport?

Direct emissions from manufacturing processes onsite?

Emissions from the electricity the organisation purchased?

Emissions from the organisations supply chain and other activities for which the operation is

indirectly responsible, such as outsourced activities or manufacture and transport of raw

materials, by another company, which your organisation then uses?

The GHG Protocol and ISO 14064 discussed above provide helpful guidance and accepted

standards on these questions. It is common to report all directly controlled emissions and

emissions from electricity in full. Emissions from indirect sources, such as the supply chain, are

more complex to define and are usually treated as optional reporting items. However, where

indirect sources contribute very large amounts of emissions it may be important to include them

a lot will depend on the purpose of reporting the carbon footprint.

Whatever the approach taken to the organisational boundary and inclusion of emissions sources,

it is important to document the decision transparently.

iii. Collect emissions data and calculate the footprint

The accuracy of the footprint relies on correct data and may include collecting information on:

Onsite fuel consumption

Owned transport utilisation



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Emissions from chemical reactions in manufacturing processes or from land use or agricultural

activities

Electricity consumption

Employee travel by air, rail and in vehicles not owned by the organisation

Suppliers emissions.

For gas and electricity, collect consumption data in MWh or kWh. Data for other fuels can be

collected in a variety of units, for example, kWh, MJ, Litres and so on. For transport emissions it

may be necessary to estimate the total fuel consumption based on the mileage of the vehicles and

fuel economy assumptions. Data on energy consumption can be translated into equivalent CO2

emissions data using standard emissions factors, which are reproduced on the Carbon Trust

website. For other emissions sources, more complex calculations may be required. Emissions of

other greenhouse gases must be translated into equivalent emissions data in tCO2e, using the

global warming potential available from the Carbon Trust.

Before collecting the data, decide what level of accuracy is required, and how much margin for

error is acceptable.

iv. Verify results

Having a carbon footprint verified by a third party, such as a consultancy or accountancy firm

can lend credibility to an organisations claims. Verification typically involves analysis of the

methodology, data collection techniques and the calculation process that was used.

Different levels of assurance or verification of your results are available. Greater levels of

assurance or verification are more onerous and expensive to achieve, but provide greater

confidence in the results.



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Carbon neutral

Commonly accepted terminology for something having net zero emissions (for example, an

organisation or product). As the organisation or product will typically have caused some

greenhouse gas emissions, it is usually necessary to use carbon offsets to achieve neutrality.

Carbon offsets are emissions reductions that have been made elsewhere and which are then sold

to the entity that seeks to reduce its impact. In order to become carbon neutral it is important to

have a very accurate calculation of the amount of emissions which need to be offset requiring

calculation of a carbon footprint.

Carbon dioxide (CO2)

The most important greenhouse gas. CO2 emissions result from the combustion of fuel, from

land use changes and from some industrial processes. CO2 emissions are limited by the Kyoto

protocol.

Carbon dioxide equivalent (CO2e)

There are six main greenhouse gases which cause climate change and are limited by the Kyoto

protocol. Each gas has a different global warming potential. For simplicity of reporting, the mass

of each gas emitted is commonly translated into a carbon dioxide equivalent (CO2e) amount so

that the total impact from all sources can be summed to one figure. The total set of greenhouse

gas emissions caused by an individual or organisation, event or product. It should be expressed

in carbon dioxide equivalent (CO2e).

Emissions conversion factor

When calculating emissions from energy use it is common to know what quantity of energy was

used, either in kWh or by volume or mass of input material. Emissions factors enable a

conversion to be made from the input measure of energy to the amount of carbon dioxide

emissions that will result.



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Greenhouse gases

Greenhouse gases are those which contribute to the greenhouse effect when present in the

atmosphere. Six greenhouse gases are regulated by the Kyoto Protocol, as they are emitted in

significant quantities by human activities and contribute to climate change. The six regulated

gases are

Carbon dioxide (CO2),

Methane (CH4),

Nitrous oxide (N2O),

Hydrofluorocarbons (HFCs),

Perfluorocarbons (PFCs)

Sulphur hexafluoride (SF6).

Emissions of greenhouse gases are commonly converted into carbon dioxide equivalent (CO2e)

based on their 100 year global warming potential. This allows a single figure for the total impact

of all emissions sources to be produced in one standard unit. Conversion factors of greenhouse

gas to CO2e are calculated by the IPCC and Defra publish guidance on which set of conversion

factors to use.

Reporting Standards

The Greenhouse Gas (GHG) Protocol

The protocol covers project emissions reporting and corporate emissions reporting. The

corporate emissions reporting standard provides a methodology for calculation of a carbon

footprint. The protocol was developed by the World Resources Institute and the World BusinessCouncil for Sustainable Development8.



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Kyoto Protocol

The goalof this protocol is stabilization of greenhouse gas concentrations in the atmosphere at

a level that would prevent dangerous anthropogenic interference with the climate system .

It includes 4 greenhouse gases4.

Carbon dioxide

Methane

Nitrous oxide

Sulphur hexafluoride

and two groups of gases

Hydrofluorocarbons

Perfluorocarbons

Its aim is average reduction of 5.2% from 1990 levels by the year 2012.

The Kyoto Protocol provides three mechanisms for the countries to acquire greenhouse gas

reduction credits:

International Emissions Trading (IET)

Clean Development Mechanism (CDM)

Joint Implementation (JI )

Countries can trade in the international carbon credit market to cover their shortfall in

allowances.

i. International Emissions Trading

Countries with surplus credits can sell them to countries with quantified emission limitation and

reduction commitments under the Kyoto Protocol.

Developed countries that have exceeded the levels can either cut down emissions, or borrow or

buy carbon credits from developing countries.



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ii. Clean Development Mechanism

A developed country can 'sponsor' a greenhouse gas reduction project in a developing country

where the cost of greenhouse gas reduction project activities is usually much lower, but the

atmospheric effect is globally equivalent.

The amount of emission reduction depends on the emissions that would have occurred without

the project minus the emissions of the project. The construction of such a hypothetical scenario is

known as the baseline of the project. The baseline may be estimated through reference to

emissions from similar activities and technologies in the same country or other countries, or to

actual emissions prior to project implementation.The developed country would be given Carbon

Credits for meeting its emission reduction targets, while the developing country would receive

the capital investment and clean technology or beneficial change in land use.

iii. Joint Implementation

A developed country with relatively high costs of domestic greenhouse reduction would set up a

project in another developed country.

ISO 14064

ISO 14064 is an international standard for corporate emissions reporting. It builds on the

approach outlined in the Greenhouse Gas Protocol. Objectives of ISO 14064 6 .

Consistency and transparency

systematic development & maintenance of GHG inventories

Carbon Trust Corporate Carbon Footprint

Provides introductory guidance for organisations thinking about carbon footprints.

Gives the overview of how to calculate a carbon footprint.



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It is based on GHG Protocol.

Offset

An emissions reduction, commonly resulting from a project undertaken in the developing world,

which has been sold to compensate for emissions elsewhere. Offsets are commonly used to net

off corporate emissions so that an organization can claim to be carbon neutral.

Verification

The process of independent third party checking of a carbon footprint calculation and statement

by the third party that the results are accurate.

2.6 CARBON CREDIT

Carbon credits are a key component of national and international emissions trading schemes that

have been implemented to mitigate global warming. They provide a way to reduce greenhouse

effect emissions on an industrial scale by capping total annual emissions and letting the market

assign a monetary value to any shortfall through trading. Credits can be used to finance carbon

reduction schemes between trading partners and around the world. There are also many

companies that sell carbon credits to commercial and individual customers who are interested in

lowering their carbon footprint on a voluntary basis 15,16

2.6.1 Background

Burning of fossil fuels is a major source of industrial greenhouse gas emissions, especially for

power, cement, steel, textile, fertilizer and many other industries which rely on fossil fuels (coal,

electricity derived from coal, natural gas and oil). The major greenhouse gases emitted by these

industries are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons etc, all of which have

not yet been completely proven to increase the atmosphere's ability to trap infrared energy and

thus affect the climate. The concept of carbon credits came into existence as a result of

increasing awareness of the need for controlling emissions.



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2.6.2 How buying carbon credits can reduce emissions

Carbon credits create a market for reducing greenhouse emissions by giving a monetary value tothe cost of polluting the air. Emissions become an internal cost of doing business and are visible

on the balance sheet alongside raw materials and other liabilities or assets. By way of example,

consider a business that owns a factory putting out 100,000 tonnes of greenhouse gas emissions

in a year. So the factory is given a quota of say 80,000 tonnes per year,17 The factory either

reduces its emissions to 80,000 tonnes or is required to purchase carbon credits to offset the

excess. One seller might be a company that will offer to offset emissions through a project in the

developing world, such as recovering methane from a swine farm to feed a power station that

previously would use fossil fuel. So although the factory continues to emit gases, it would pay

another group to reduce the equivalent of 20,000 tonnes of carbon dioxide emissions from the

atmosphere for that year.

Another seller may have already invested in new low-emission machinery and have a surplus of

allowances as a result. The factory could make up for its emissions by buying 20,000 tonnes of

allowances from them. The cost of the seller's new machinery would be subsidized by the sale of

allowances. Both the buyer and the seller would submit accounts for their emissions to prove thattheir allowances were met correctly. It is the hole process of buying carbon credit.

2.6.3 Credits versus taxes

By treating emissions as a market (commodity) it becomes easier for business to understand and

manage their activities, while economists and traders can attempt to predict future pricing using

well understood market theories. Thus the main advantages of a tradable carbon credit over a

carbon tax are: the price is more likely to be perceived as fair by those paying it, as the cost of

carbon is set by the market, and not by politicians. Investors in credits have more control over

their own costs.9 the flexible mechanisms of the Kyoto Protocol ensure that all investment goes

into genuine sustainable carbon reduction schemes, through its internationally-agreed validation

process.



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2.6.4 Additionality and Its Importance

It is also important for any carbon credit (offset) to prove a concept called additionality.

Additionality is a term used by Kyoto's Clean Development Mechanism to describe the fact that

a carbon dioxide reduction project (carbon project) would not have occurred had it not been for

concern for the mitigation of climate change. More succinctly, a project that has proven

additionality is a beyond-business-as-usual project. The Kyoto Protocol, an international

agreement between more than 170 countries, The mechanism adopted was similar to the

successful US Acid Rain Program to reduce some industrial pollutants17

According the World Resources Institute/World Business Council for Sustainable Development

(WRI/WBCSD) : "GHG emission trading programs operate by capping the emissions of a fixed

number of individual facilities or sources15.

The idea is to achieve a zero net increase in GHG emissions, because each tone of increased

emissions is 'offset' by project-based GHG reductions. The difficulty is that many projects that

reduce GHG emissions (relative to historical levels) would happen regardless of the existence of

a GHG program and without any concern for climate change mitigation. If a project 'would have

happened anyway,' then issuing offset credits for its GHG reductions will actually allow a

positive net increase in GHG emissions, undermining the emissions target of the GHG program.

Additionality is thus critical to the success and integrity of GHG programs that recognize

project-based GHG reductions."

2.6.5 Carbon credit in India

At last count in March 2006, India had 310 eco-friendly projects awaiting approval. Once

cleared, these projects can fetch about Rs 29,000 crore16 in the next seven years. Indias carbon

credit market is growing, as many players (industries) are adopting the Clean Development

Mechanism (CDM). Elaborating on global emission trading Panigrahi added, For instance, US



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accounts for 30 per cent of global emissions, while India makes for three per cent. Now, India

can transfer part of its allowed emissions to developed countries. For this, India must first adopt

CDM and accrue carbon credits. One carbon credit or Certified Emission Reductions (CERs) is

equivalent to one tonne of emission reduced.

4. CONCLUSION

It can be concluded that carbon footprints as well as carbon credits carries an importance in our

daily life and produces a significant effect. So everyone should realize its effect and should try to

protect the nature from its adverse effects. The carbon credit business is a rapidly changing

business, and people should be aware that market rates, protocols, and registration programs can

change quickly. There are many companies involved in carbon credit trading, and a few have

been active in brokering credits for agricultural projects.



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5. REFERENCES

1 Carbon Trust: www.carbontrust.co.uk

2 World National Carbon Footprints (http://www.carbonfootprintofnations.com)

3. Stern Report: www.hm-treasury.gov.uk/

4. GHG Protocol www.ghgprotocol.org

5 UK Carbon Trust (2008) "Carbon Footprinting".

6. Walkers Carbon Footprint

http://www.walkerscarbonfootprint.co.uk/walkers_carbon_trust.html

7. Parliamentary Office of Science and Technology POST (2006).

Carbon footprint of electricitygeneration. October 2006, Number 268

8. Wiedmann, T. and J. Minx (2008).

A Definition of 'Carbon Footprint'. Ecological Economic Research Trends.

9. C. C. Pertsova: Chapter 1, pp. 111. Nova Science Publishers, Inc, Hauppauge NY, USA.

10. World Energy Council Report (2004).

Comparison of energy systems using life cycle assesment.

11. Energetics (2007). The reality of carbon neutrality.

12. ISO Standards www.iso.org

13. Carbon Footprint: what it is and how to measure it

(http://lca.jrc.ec.europa.eu/Carbon_footprint.pdf)

14. Carbon footprint calculators (http://calc.co2list.org) a comparison site

15. http://en.wikipedia.org/wiki/Carbon_credit/.

16. Carbon credit. William Collins Sons & Co. Ltd/Harper Collins Publishers. 2009.http://dictionary.reference.com/browse /carbon+credit..

17. Carbon Credit Definition. Investopedia Inc.http://www.investopedia.com/terms /c/carbon_credit.asp . Retrieved 2010-09

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