1. CARBON CREDIT
Prepared by :
Jimit.S.Dhruv
Elect.Engg.
Valiya Institute
Of
Technology-Valia.

2. CONTENTS
 Introduction to carbon credit.
 Background.
 Emission Allowances.
 Kyoto's 'Flexible Mechanisms' .
Carbon credit in India.
 How buying carbon credits can reduce
emissions.
Criticisms

3. INTRODUCTION
Carbon credits as a key component
Use of credits.
Carbon credits with compnies
Quality of carbon credits.
1. Validation process
2. Sophitication of the fund
Two types of credits
1. Carbon offset credits
2. Carbon reduction credits
One Carbon Credit is equal to one ton of Carbon.

4. BACKGROUND$
• Major sources
• Use of causes
• The kyoto protocal at KYOTO,
JAPAN—December 1997
• It came into utilisation in 16FEB 2005
• Under that aggrement the industrilised countries reduce their
emmision by 5.2% compared to year 1990
• The mechanism was formalized in the Kyoto Protocol, an
international agreement between more than 170 countries.

5. GHGs EMISSIONS

6. EMISSION ALLOWANCES
• Emmision done in five year period from 2008-2012 but till now
1. 8% EUROPION UNION
2. 7% UNITED STATES
3. 6% JAPAN
4. 0% RUSSIA
5. 8% AUSTRALIYA
6. 10% ICELAND
• Quotas of protocol
• Each oprations has an allownces of credit
• Application of credit in industries
• Since 2005 the kyoto mechanism Has been adopted for co2 trading
by all the coutrieswithin the europion union

8. Kyoto's 'Flexible
•
mechanisms'
A credit can be emmision aa
• Three Mechnism:
1. JOINT IMPLIMENTATION
2. CLEAN DEVELOPMENT MECHANISM
3. INTERNATIONAL EMMISION TRADING
• These carbon projects can be created by a national government or by
an operator within the country.

10. CARBON CREDIT CERTIFICATE

11. How buying carbon credits
can reduce emissions
Carbon credits create a market for reducing greenhouse emissions.
By way of example
After this the business may decide that it is uneconomical or infeasible to invest in
new machinery for that year .
Also consider alternate sources of energy.
Although if a factory continues to emit ghg,then it would pay other group.
Another seller may have already invested in new low-emission machinery and have a
surplus of allowances as a result.

12. Carbon Credit & India.
India comes under the third category at UNFCCC but is leader.
Jindal ‘s technology would prevent 15 million tonnes of carbon from being
discharged into the atmosphere in the coming decade.
ie $15/tonne that is a total of $225 million.
World Bank had just handed over $10 million to India’s Infrastructure
Development Finance Company to fund ‘clean’ projects that would generate
saleable carbon credits.

13. Criticisms
Sometimes difficult to manage emissions.
The Kyoto mechanism is the only internationally-agreed mechanism for
regulating carbon credit activities .Its supporting organisation, the UNFCCC,
is the only organisation with a global mandate on the overall effectiveness of
emission control systems.
The Kyoto trading period only applies for five years between 2008 and
2012.
Developed countries get license for emission.
Over all machinery increases, so emission of ghg increases.

14. Just a beginning.

15. We are already behind.

16. SAVE EARTH
ours should be green attitude

17. THANK YOU

18. Links:
www.wikipedia.com
www.google.com