Posts Tagged ‘credit’


Word of the Day:
Carbon Credits

by The Green A-Team

Word of the day, CARBON CREDITS! Scheme or scam?

We’re all pretty clear on the idea that greenhouse gases like carbon dioxide, methane, nitrous oxide, and hydoroflourocarbons in excessive amounts are no good and increase the atmosphere’s ability to trap infrared energy and thus affect the climate. In an effort to put a cap on these emissions on a global industrial scale, the Kyoto Protocol, an international agreement with about 170 countries back in 1997, invented certified emissions reduction credits, CER’s or carbon credits for short. These credits are validated and awarded by the UN to companies of wealthy nations who invest in clean energy projects in developing countries. The carbon credit gives its owner the right to emit one metric tonne of carbon dioxide or greenhouse gas.

What may seem an even trade, clean energy over there for dirty production here, is under fire by critics for the “flexible mechanisms” owners are allowed use their credits. Once you’ve got your carbon credit in hand, you can auction it to the highest bidder or sell it off to other companies at market rate. Some credits doled out by the UN have been found to be bogus, awarded to companies who invested in project that would’ve happened anyway without their help.

As consumers, carbon credits are given out to households that put clean energy back into the grid through private wind, hydroelectric, and solar systems. You can buy, sell, and participate in the debate surrounding this new cap and trade system of climate cleaning yourself!

Share:

These icons link to social bookmarking sites where readers can share and discover new web pages.
  • StumbleUpon
  • Facebook
  • Digg
  • del.icio.us
  • Google
  • Sphinn
  • Mixx