|Carbon credit is a financial instrument that represents a tonne of carbon dioxide, or carbon dioxide equivalent gases, removed or reduced from the atmosphere. An emission reduction project such as a tree plantation and renewable energy projects can be used by governments, industry or private individuals to offset the damaging carbon emissions they generated. With the progress of civilisation, the emissions of carbon or harmful gases have also gone up, resulting in global warming. Some decades ago, a debate started on how to reduce the emission of harmful gases that contributes to the greenhouse effect that causes global warming. So, many countries came together and signed an agreement named the Kyoto Protocol.|
| Vanadurgi’s initiative:
Vanadurgi Foundation promotes tree cultivation in various parts of South India through its tree promotion programmes. For details, log on to www.vanadurgi.com. As far as the Vanadurgi Agriculture-Technology Capital is concerned, it is estimated that about 0.7 tonne of carbon is stored in a mature agar tree, about 1.2 tonne in silver oak, and a lot more in timber trees. The Company is planning to bring its plantations under emission reduction projects where owners have a chance to earn a substantial income while also conserve the environment, for today, and tomorrow.
| Global warming:
An increase in the temperature of Earth can change climate and weather patterns. Global warming results from an increase in greenhouse gases in the atmosphere, causing the surface of the Earth to become warmer by trapping the heat reflected off the Earth. Climate change is an effect of global warming.
| Carbon footprints:
A carbon footprint has been defined as the amount of emission caused by an organization, event, product or person. In our daily lives, all our activities contribute to greenhouse gas emissions that lead to global warming. Yet, there are many things we can do, as individuals, to reduce our carbon emissions. The choices we make in our daily life impacts our carbon footprint. Therefore, it is every individual’s responsibility to ensure a stable climate for future generations.
| Indian scenario:
India is one of the biggest sellers and Europe is the biggest buyer of carbon credits. Global carbon credit trading was estimated at $5 billion, with India’s contribution at around $1 billion. India has generated some 30 million carbon credits and has roughly another 150 million to push into the world market. Plantation companies can sell carbon credits and make money. Carbon, like any other commodity, has begun to be traded on India’s Multi Commodity Exchange. MCX has become the first exchange in Asia to trade carbon credits.
| Carbon trade:
Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price. The Kyoto Protocol-linked market comprises several legally-binding, mandatory emission-trading schemes largely established under the United Nations Framework on Climate Change. The voluntary carbon trade enables companies and individuals to purchase carbon credits on a voluntary basis to reduce the emission they are producing, or for the corporate social responsibility objective.