Carbon credit trading is a way to reduce a company’s overall carbon dioxide output in order to comply with pollution laws and regulations. Companies would buy or sell carbon credits. One ton of carbon is usually equivalent to one carbon credit.
Paternoster Square: Home of the London Stock Exchange
Typically, companies are given a carbon emissions cap by a government or an international authority. If a company’s carbon output exceeds its total cap, they can sell the excess to a company that has not reached its carbon credit limit. Therefore, companies that emit too much carbon dioxide must pay for polluting the environment while companies that pollute less are financially rewarded. Carbon credit trading encourages companies and individuals to use solar energy (generally to reduce their emissions in any way), reduce their carbon output and benefit out of the carbon credit trading schemes.
We at solar-e believe that this is a part of the solution, not the entire solution, and we have to be realistic about the possible achievements.
What carbon rate is needed and what are the industry sectors for the highest priority to action? We would be interested in your opinion.
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REFERENCES:
1) http://www.wisegeek.com/what-is-carbon-credit-trading.htm
2) http://en.wikipedia.org/wiki/Carbon_credit
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Name- Paternoster Square
Source- http://en.wikipedia.org/wiki/File:Paternoster_Square.jpg
Image released into the public domain
