D EMYSTIFYING C ARBON C REDITS

E FFECTS OF C LIMATE C HANGE  Change in the temperature, Cyclones & Extreme Weather  Melting of the Ice  Rise in Sea level  Heat related illness and deaths  Reduction in crop yields

C ARBON C REDITS WHAT ITS’ ABOUT..  Emission trading approach  Carbon Footprints  Carbon Offsetting  Two Types of carbon credits -: Carbon Offset Credits and Carbon Reduction credits.

C ARBON C REDIT C ERTIFICATE

WHY WE NEED IT…  Helps Capping total annual emissions  Assigns a monetary value to the carbon emitted  Gives business and economic incentives to Organization who reduce emission.  Necessitates adoption of clean technologies by the developed nations.  Helps developing nations get foreign investment for developing advanced clean technologies. C ARBON C REDITS

C ARBON M ARKETS 3 P RINCIPAL R EGIMES Kyoto Mandatory Regime UNFCCC KYOTO PROTOCOL Non Kyoto Mandatory Regime New South Wales (Aus) Individual US States (East coast, California, Oregon) European Union Trading scheme ( EU-ETS) Voluntary Regimes Chicago Climate Exchange (CCX) Retail Market Source : UNFCCC Site

1992 UNFCCC establishes Framework 1997 Treaty negotiated in Kyoto (Japan) Opened for signature 2005 Agreement Came into Existence K YOTO : B ACKGROUND

 183 Countries ratified as of Jan 2009  This represents about 64% of industrialized country emissions  Developed countries have a target to reduce GHG emissions by 5.2%  India, China, and Brazil are classified as emerging countries and hence exempted from this protocol K YOTO P ROTOCOL

UNFCC Kyoto Protocol Project Based Clean Development Mechanism Joint Implementation Allowance Based International Emission Trading KP M ECHANISMS

Clean Development Mechanism  Sales of CER from Developing to Developed country  Certified Emission Reductions (CER)  1430 Registered projects reducing 550 Mton CO 2 Source : UNFCCC Site

J OINT I MPLEMENTATION  One industrialised country to another  Emission Reduction Units (ERU)  203 Projects reducing 21 Mton CO 2 Source : UNFCCC Site

 Cap and Trade  Assigned Amount Units (AAU)  EU ETS, UK ETS, CCX International Emissions Trading Businesses that don’t reduce emissions enough must buy credits Businesses that reduce emissions more than required can sell credits MONEY CREDITS GHG emission cap (set by authorities) Cap is lowered over time The European Union Emission Trading Scheme is the largest under Kyoto

P ROJECT B ASED T RANSACTIONS Source : UNFCCC Site

C ARBON C REDIT M ARKET IN I NDIA  Signed and ratified the Protocol in August, 2002  Second largest seller of carbon credits after China.  Carbon credits traded on MCX in India.  Major players of carbon credits – Torrent Power AEC, Gujarat Fluro Chemicals and Jaypee Associates engaged in energy efficiency and gas capture.

A REAS O F C ONCERN The major polluters apart from industrial wastes are:  Paddy fields  Enteric fermentation from cattle and buffaloes  Municipal Solid Waste The above issues can be addressed by:  Development of special irrigation strategies and technologies  Proper feed management of cattle  Segregation of wastes and production of clean fuel

D RAWBACKS OF C ARBON C REDITS  Excuses the emission of carbon rather than reducing it.  Form of privatization of the atmospheric commons.  Creates transferable rights to dump carbon in the environment and vegetation far in excess of the capacity of these systems to hold it

O UR S OCIAL R ESPONSIBILITY  Replacing five incandescent bulbs that you use for five hours a day with CFLs reduces carbon emissions by about 250kg CO 2 /yr.  Switching off just five 60W lights in your home saves about 270kg CO 2 /yr.  Drying clothes on a line instead of a tumble drying saves 280kg of CO 2 /yr.  Turning off the tap while brushing teeth saves about 3kg of CO 2 /yr.  Fixing a dripping tap saves about 20kg of CO 2 /yr.

THANK YOU !!!