How To Trade Carbon Credits And Reduce Global Warming

Carbon Credit Trading is a process whereby organizations purchases carbon credits to neutralize their Carbon Dioxide impact on global warming.

Each carbon credit represents the sequestration of one ton of carbon emissions from the Earth's atmosphere.

All countries which are signatories to the Kyoto Agreement of 1997 (ie. have ratified the Kyoto Protocol), have agreed to limit their carbon emission to a predetermined amount. Alternatively, they can offset their omissions through the process of Carbon Credit Trading. This involves buying credits from someone else. The reason for Carbon Credit Trading is compelling - an undeniable fact about global warming is that carbon dioxide released into the atmosphere is, via the greenhouse effect, warming the earth's surface. Global warming is the major reason for the phenomena of climate change. And its climate change that carbon credit trading is trying to manage through the introduction of an emission trading scheme, by setting a target to cut greenhouse gas emissions by up to 60% by 2050.

Those countries supporting the Kyoto Protocol believe that Carbon Credit Trading will reward all organizations and governments that reduce carbon dioxide emissions. And those that don't reduce carbon emissions will be punished. Those that are being rewarded will generate carbon credits equal to the emission reduction. The companies which don't reduce emissions will then need to purchase carbon credits from the companies which have reduced their emissions. The net effect of this carbon credit trading is the increase in profitability on the more environmentally companies. All parties are therefore encouraged to reduce carbon emissions.

There are many arguments against carbon credit trading - so even go as far as saying that the Kyoto Protocol is counter productive, and has the opposite effect in that it INCREASES global warming. This is the general logic: Countries without carbon limits are free to participate in carbon trading. They can therefore generate infinite carbon emissions without incurring a penalty, and can also sell credits. For example, build a plant which generates massive carbon emissions and then add equipment to reduce those emissions! This effectively taxes responsible corporations while providing financial advantages to uncooperative organizations. The system therefore encourages further global warming along with the intensification of agrochemical based agriculture.

There is a need to support the creation of a system of carbon taxes and incentives that systematically, destructively and positively discourages the excessive use of traditional fossil fuels. The alternative is that global warming will continue at a rapidly accelerating pace.