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Demystifying Carbon Credit A Group 5 Presentation
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Demystifying Carbon CreditA Group 5 Presentation
Voluntary Carbon Market
Defining Carbon Credit
ContentsContents
Flexible Mechanisms
Kyoto Protocol
Voluntary Carbon Market - Factsheet
Global Warming - Causes and Effects
Regulated Carbon Market
Future Challenges
Regulated Carbon Market - Factsheet
Causes of Global Warming
Effects of Global Warming
Increase in average atmospheric temperature
Rise in mean sea level
Abrupt weather change
More frequent heat waves and tropical cyclones
A key component of national and international attempts
to mitigate the growth in concentrations of greenhouse
gases (GHGs).
One Carbon Credit is equal to one ton of Carbon-dioxide
equivalent.
There are two distinct types of Carbon Credit Markets:
Regulated and Voluntary.
Defining Carbon Credit
An international environmental treaty .
Adopted on 11 December, 1997 in Conference of
Parties to the UNFCCC (COP – 3).
Came into force on 16 February, 2005.
Establishes legally binding commitment for the
reduction of greenhouse gases.
An international agreement between more than 170
countries.
Kyoto Protocol
Flexible Mechanisms
Annex 1
Annex 1
non-Annex1
CER$$$
ERU
$$$
AAU
$$$
IET
CDM
JI
CER – Certified Emission ReductionERU – Emission Reduction UnitAAU – Assigned Amount Unit
Regulated Carbon Market
Regulated Carbon Market
Regulated Carbon Market
Voluntary Carbon Market
Voluntary Carbon Market
65
123
0
20
40
60
80
100
120
140
2007 2008
Voluntary Market (In Million Tonnes)
Voluntary Market (In Million Tonnes)
Voluntary Carbon Market
Increase In Carbon Market
Reuters CER Index
€ 12.71 € 12.84
€ 7.48
€ 18.37
€ 22.85
€ 13.54
€ 0.00
€ 5.00
€ 10.00
€ 15.00
€ 20.00
€ 25.00
2007 2008 2009
Minimum Price
Maximum Price
• For the year 2009, the data is taken till 6th of July.
Future Challenges
Challenges for organizations in Annex – 1 Countries.
Businesses turning into financially nonviable.
Carbon Liability becoming Carbon Opportunity.
Possibility of Carbon Tax for every corporate in future.
Thank You
