| It is common place these days for carbon credits | | | | The prerequisites a carbon credit business are: |
| to be bought and sold like any other goods and | | | | 1) Your country must have signed the Kyoto |
| services regularly traded for on the international | | | | Protocol (the United States has still not signed it |
| market. Carbon Credits have seen a huge growth | | | | as of March 2007). These credits are made |
| this year, with permits to emit greenhouse gases | | | | possible by the Kyoto's Clean Development |
| doubling in 2007 to be worth to more than 20 | | | | Mechanism (CDM). That's why sometimes this |
| billion euros (RM93bil). The dramatic jump in price | | | | new line of trading is also referred to simply as |
| has highlighted the role big business can play in | | | | "CDM" business. |
| fighting climate change, while still turning a profit. | | | | 2) You have to register your "carbon saving" |
| The rate for carbon credits in the international | | | | project with the United Nations before you can |
| market hovers (in March 2007) around 11 to 12 | | | | sell your credits to other international purchasers. |
| Euros per ton. | | | | Selling the "right to pollute" can buy time for |
| Reforestation is an example of how carbon | | | | companies in developed countries that have not |
| credits can be generated to sell on an international | | | | yet reduced their carbon emissions. The price of |
| market. The total "carbon credit potential" of | | | | carbon credits will rise as companies and individuals |
| forests in New Zealand can add up to $13,000 to | | | | buy carbon credits and raise the market value. |
| $20,000 per hectare over the life of the forest | | | | The raising price will give an incentives for |
| through the trees removing carbon dioxide from | | | | western companies to buy less credits and |
| the atmosphere. | | | | become more efficient. The money generated |
| Projects that permanently reduce existing carbon | | | | from this system will help developing countries |
| emissions is another way a company can produce | | | | improve their efficiency where they meet the |
| carbon credits for resale. The Indian company, Oil | | | | standards to be eligible to sign the Kyoto Protocol. |
| and Natural Gas Corporation Limited, has | | | | Carbon credits are becoming a lucrative growth |
| announced it will register 11 energy saving | | | | market, and giving incentives to businesses and |
| projects to reduce gas flaring with the United | | | | politicians to join the carbon market. Western |
| Nations by the end of 2007. Projects to reduce | | | | companies from countries that have signed the |
| wasted heat in industrial plants or upgrading | | | | Kyoto Protocol who have not reduced their |
| turbines and equipment for more efficient energy | | | | carbon emissions will continue to buy these credits |
| production are all projects that qualify for carbon | | | | from countries that have an excess. |
| credits. | | | | |