Porter of Hul

4/13/13

Car bon cr edit - Wikipedia, the fr ee encyclopedia

A ca rbon cre dit is a generic term for any tradable c ertific ate or permit repres enting the right to emit one tonne of
c arbon diox ide or the mas s of another greenhous e gas with ac arbon diox ide equivalent (tCO2e) equivalent to one
tonne of c arbon diox ide.[1][2][3]
Carbon c redits and c arbon mark ets are a c omponent of national and international attempts to mitigate the growth
in c onc entrations of greenhous e gas es (GHGs ). One c arbon c redit is equal to one metric tonne of c arbon diox ide,
or in s ome mark ets , c arbon diox ide equivalent gas es . Carbon trading is an applic ation of an emis s ions
trading approac h. Greenhous e gas emis s ions are c apped and then mark ets are us ed to alloc ate the emis s ions
among the group of regulated s ourc es .
The goal is to allow mark et mec hanis ms to drive indus trial and c ommerc ial proc es s es in the direc tion of low
emis s ions or les s c arbon intens ive approac hes than thos e us ed when there is no c os t to emitting c arbon
diox ideand other GHGs into the atmos phere. Sinc e GHG mitigation projec ts generate c redits , this approac h c an
be us ed to financ e c arbon reduc tion s c hemes between trading partners and around the world.
There are als o many c ompanies that s ell c arbon c redits to c ommerc ial and individual c us tomers who are
interes ted in lowering their c arbon footprint on a voluntary bas is . Thes ec arbon offs etters purc has e the c redits from
an inves tment fund or a c arbon development c ompany that has aggregated the c redits from individual projec ts .
Buy ers and s ellers c an als o us e an ex c hange platform to trade, s uc h as the Carbon Trade Ex c hange, whic h is
lik e a s toc k ex c hange for c arbon c redits . The quality of the c redits is bas ed in part on the validation proc es s and
s ophis tic ation of the fund or development c ompany that ac ted as the s pons or to the...