We all are constantly aware and alarmed by the fatal consequences of global warming. This has resulted in air and water to become warmer and warmer and faster melting of glaciers by each passing minute. This normally reflects the sunlight back into space which in turn compounds the global warming problem. We knowingly or unknowingly aggravate the ever growing problem. We use electricity, vehicle and plastics everyday which are the main carbon producers that households contribute to global warming.

Global warming is a burning issue globally. Today new car, used cars and trucks equally burn gasoline to get on with their regular work and gasoline burning is a major resource of carbon dioxide emissions everywhere. Carbon Dioxide is thus emitted into the environment. Carbon Dioxide has been scientifically linked to global climate change and warming. Therefore, complete awareness among people is required to combat this disastrous issue. People must be motivated and enthusiastic about reduction of this gas through whatever ways possible to maintain equilibrium in the eco system.

Everyday while driving a car, lighting your residence and office, transporting goods and also using a computer, we use energy and produce greenhouse gas emissions like carbon dioxide that have a major consequence on the climate change. You will inevitably have to pay hugely for your emissions; thus by employing carbon offsets, you can make an equivalent greenhouse gas saving. By taking a few things into consideration too, you can control carbon dioxide emission. You must switch off the light when not in use, must start a habit of walking or cycling which will in turn reduce the use of automobiles.

There are various kinds of project that will help to reduce carbon emissions. The projects include renewable Energy, Hydro Power, solar power, agricultural residues and wind power etc. Each project is very helpful and plays a vital role in reductions of CO2 that would not have happened otherwise. If you are engaged in a business that transmits CO2, you should start by reducing your consumption and your carbon footprint now. Your small steps can make a huge difference. Business carbon offsetting is making a positive and real statement to your employees, customers and shareholders. Just like you they all are also affected by climate change and will be more attracted, and devoted to businesses that are committed towards caring for the environment. Green companies are more efficient and more beneficial than their rivals. Many of the most successful ones are now familiar with the clear business benefits of addressing environmental issues.

“Climate change has the potential to adversely affect our environment, our communities and our economy unless we take action now – to reduce our greenhouse gas emissions and prepare for the impacts.”

Our earth is undoubtedly getting warm day by day due to the emissions of carbon dioxide and other Greenhouse Gases (GHG’s) from various human activities including industrial processes, fossil fuel combustion, and changes in land use, such as deforestation etc. Global warming is primarily a problem of too much carbon dioxide in the atmosphere. There are many heat-trapping gases (from methane to water vapor), but CO2 puts us at the greatest risk of irreversible changes if it continues to accumulate unabated in the atmosphere. CO2 remains in the atmosphere longer than the other major heat-trapping gases emitted as a result of human activities. A carbon footprint is a measure of the impact our activities have on the environment, and in particular climate change.

Carbon dioxide, the most significant (both in terms of abundance and impact) anthropogenic greenhouse gas, is a natural and essential part of the atmosphere. It is required for the photosynthesis of all plants (photosynthesis is the basis of life on Earth by providing oxygen and huge quantities of organic compounds). Vital for life it is also good for our planet but only at very small concentrations. Too much concentration of CO2 in the atmosphere can turns into a deadly equation, causing adverse effects. About one third of the carbon dioxide that humans produce by burning fossil fuels is being absorbed by the world’s oceans, gradually causing seawater to become more acidic.

As Global warming has threatened us with huge economic dislocations, more powerful storms, diseases, catastrophic droughts, dwindling food supplies, unprecedented floods, and vanishing coastal areas; the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system is all that is now required to save the life on our planet.

To protect ourselves, our economy, and our land from the adverse effects of climate change, we must reduce emissions of carbon dioxide and other greenhouse gases. We should try to compensate for the emissions produced by funding an equivalent carbon dioxide saving somewhere else. Being carbon neutral is tough but it is our social responsibility to protect the planet for future generations.

Carbon credits are an element used to aid in regulation of the amount of gases that are being released into the air. Carbon “credits” or “offsets” help us to adopt a carbon neutral lifestyle with ease. If you want to go towards neutrality or perhaps adopt a reduce/offset strategy you can buy carbon offsets once you know your footprint.

Global warming skeptics are meeting on the sidelines of the UN’s climate-change conference in Copenhagen. The gathering is seeking a deal to curb greenhouse gas emissions. But critics insist that global warming is not caused by humans.

With all the stress on the environment today, carbon and greenhouse gas (GHG) reduction has become a major issue. With more than 20 million tons of carbon dioxide being produced globally each year; reducing carbon emissions, curtailing waste, and producing more clean energy are the call of the day. Eco-conscious individuals, businesses, and corporations are all striving towards reducing their carbon footprint. When emissions are reduced as much as possible or until it’s feasible to eliminate the carbon footprint, carbon offsets come into play. A carbon offset is a form of trading, specifically a credit for the reduction in harmful emissions not by the firm’s actions but through the work of another establishment. This credit is generated when the said establishment’s work results in a drop in the level of carbon dioxide or greenhouse gas emissions below a certain mandatory or voluntary cap. The mandatory/compliance cap is usually set by governments or an international body. Therefore, a carbon offset essentially lets an entity pay to reduce the level of these harmful pollutants rather than making any improbable or unachievable reductions on its own.

These carbon offsets are traded on a local, national and global scale. An international network of retailers, brokers and trading arenas exist to facilitate the buying and selling of these offsets. The offsets are normally measured in terms of a ton of carbon dioxide equivalents i.e. CO2e. Various activities can help create carbon offsets; for example, the use of renewable sources of energy such as wind power and biomass energy as well as participating in activities like reforestation and agriculture. The use of renewable energy systems can generate a tremendous carbon offset, due to the important fact that they eliminate the dependency on fossil fuels and virtually generate zero emissions.

As far as offset projects go, wind projects tend to be more sustainable and viable, especially since the process does not produce any ozone harming by-products and does not depend on fossil fuels. To quantify how many carbon offsets are generated by a wind farm, according to the American Wind Energy Association (AWEA), in 2008, the U.S. wind energy industry brought online approximately 8,500 megawatts (MW) of new wind power capacity. This production will help avoid nearly 44 million tons of carbon emissions – the equivalent of taking 7 million cars off the road. Therefore, for every megawatt of installed capacity, a wind farm can potentially earn approximately 5,175 of CO2e – the equivalent of taxing approximately 820 cars off the road. Wind energy generation organizations sell carbon offsets, benefitting both the buyer and the company. Buyers purchase these offsets because supporting wind power not only leads to the creation of a ‘green’ source of energy, but also helps ‘negate’ their own greenhouse emissions, big and small. Buying carbon offsets from wind farms are not only a way to ease the buyers’ conscience and reduce their carbon footprint, but can also be much less expensive than making changes to eliminate emissions. The wind energy generation facility itself profits because selling these offsets makes the project more financially viable and profitable, which helps increase the scale of productivity as well.

With environmental markets growing, it is necessary to understand the scope of emissions today.

There are three different scopes for carbon emissions that occur in the carbon footprint of an organization or business concern:

Emissions that are created directly at the location, through direct sources like on-site machinery and apparatus like a generator located at a factory. Energy related emissions and indirect power based emissions like the electricity purchased by a company to keep the premises well lit up. Emissions that occur via indirect sources of emissions like those related to the use of paper in an office, corporate travel etc.

As the United States has neither ratified the Kyoto Protocol nor mandated any laws to cap its emissions as of July 2009, all carbon offsets are voluntary. Therefore, only two environmental markets coexist in the U.S. i.e. carbon offsets also known as voluntary emission reductions (VERs) and renewable energy certificates (RECs). Although these markets are interrelated, there are marked differences between the two commodities.

VERs or carbon offsets, also called carbon reduction ton, denotes activities that result in a cutting of, reduction and/or getting rid of one ton of greenhouses gases at a given site, to counteract an emission taking place in another. Typically these offsets are used to negate direct emissions or a scope one emission. For example a company can purchase carbon offsets created through a wind power project to ‘clear’ emissions created by a boiler in their office.

Offsets are subject to a rigorous set of guidelines, standards and rules. These guidelines primarily ensure that vital environmental and financial criteria are met so that customers can be assured that the offsets purchased are indeed authentic and verifiable. There is also an additionality requirement that represents the fact that a given greenhouse gas reduction project would not have been made possible without the expectation of additional funds procured from the sale of offsets. This is to ensure that the emissions reduction activity is in addition to regular business practice, hence facilitating a reduction that would not have happened otherwise in previous circumstances. In other words, countries and/ or businesses must make an active contribution to emission reduction in order to earn or sell credits instead of relying on pre-existing projects planned for other reasons with funds already committed. Thereby, ensuring buyers that their purchase will further the betterment of the global climate and environment.

RECs or renewable energy certificates denote one megawatt hour (MWh) of energy produced by a ‘clean’ renewable source. Energy produced by sources like wind, hydro, and biomass represents an offset because an environmentally friendly procedure replaces one using environmentally degrading fuel; emitting little to no carbon in the process. Emission reductions take place during energy creation, by replacing fossil fuel, at the utility itself. RECs are typically used to counteract indirect scope two emissions, wherein ‘clean’ megawatts of electricity by the REC can neutralize the unclean ones used by a company. RECs, however, are generally not held to the same standards and more importantly the additionality requirements like VERs. As a result, they can be supplied from resources that are running as is, or in part from additional business activities.

It is interesting to note that only renewable energy projects such as wind farms and solar power plants meet the highest standards required of carbon offsets, as the risks they pose to the environment are negligible and they encourage a much needed departure from fossil fuel usage.

The term carbon offset means that you attempt to mitigate or reduce the effects of your emission of greenhouse gases by trying to do other activities which may have an equivalent value. For example, you might attempt to mitigate your carbon footprint or amount of carbon dioxide that you are responsible for producing because you own a private vehicle, by planting many, many trees in your community. To mitigate means you are offsetting your carbon emissions rather than reducing the degree to which you create carbon emissions in the first place.

The term carbon offset is used in close relation to the concept of emissions trading. In emissions trading, a government agency is usually responsible for setting mandatory limits for emission of a type of pollutant. If the enterprise is able to stay within limits for emission of that pollutant, the government will grant economic incentives to the enterprise as a reward for reducing pollution released into the environment. Strangely enough, if an enterprise has surpassed the limit for the emission level of the pollutant, the enterprise has the option of purchasing “credits” from other enterprises which have been able to stay well within emission limits. A credit represents how much emissions an enterprise is permitted to release into the environment.

The same principle used in emissions trading has been set into place through the adoption of the global Kyoto Protocol carbon credits scheme. Carbon credits designates a monetary or financial value to greenhouse gas emissions. For instance, one credit means the owner of the credit has permission to release one tonne of carbon dioxide. The Kyoto Protocol is one internationally-recognized treaty which defines the limits of emissions that entire countries can release into the environment over a certain period of time. These countries are then responsible for regulating the businesses or enterprises which operate in their jurisdiction, as far as their level of emissions are concerned. Just like in emissions trading as shown above, the carbon credits scheme allows businesses which have surpassed the permitted amount of emissions released to purchase carbon credits from those businesses which have been able to stay within emissions limits. An interesting aspect of carbon credits is that they can be traded on an open market level as well, with a market price being observed.

On the other hand, there are companies which are able to observe a carbon project mechanism in the way they operate. A carbon project pertains to a business program where the enterprise attempts to reduce its total level of greenhouse gas emissions so that the company will receive funding in return (as a reward, so to speak.) Carbon projects are better than simply buying carbon credits because it means the business is attempting to voluntarily cut down on its greenhouse gas emissions. Some enterprises choose to adopt a carbon project because they may have been guilty of surplus emissions in the past, and saw the carbon project mechanism as being preferable to paying a carbon tax or buying carbon credits from other enterprises. (A carbon tax can be perceived as a default penalty to be paid by the enterprise because it surpassed limits for emissions.)

The Kyoto Protocol is a UN-led international agreement reached in 1997 in Kyoto, Japan to address the problems of climate change and the reduction greenhouse gas emissions. The Kyoto Protocol went into force on February 2005.

Signatory countries are committed to moving away from fossil fuel energy sources – oil, gas, and coal, to renewable sources of energy such as hydro, wind and solar power, and to less environmentally harmful ways of burning fossil fuels. Greenhouse gases such as carbon dioxide, methane and nitrous oxide are mainly generated by burning fossil fuels. Higher levels of greenhouse gas emissions cause global warming and climate change.

The Protocol commits 38 industrialized countries to cut greenhouse gas emissions by 2008-2012 to overall levels that are 5.2 percent below 1990 levels. Targets for greenhouse gas emissions reduction were established for each industrialized country. Developing countries including China and India were asked to set voluntary targets for greenhouse gas emissions.

The Canadian target for Kyoto is to reduce by 2012, greenhouse gas emissions by six percent below their 1990. The United States did not ratify the Kyoto Protocol, and in February 2002 introduced the Clean Skies and Global Climate Change initiatives, in which targets for reduction in greenhouse gas emissions are linked directly to GDP and the size of the U.S. economy.

Trading of carbon emissions is linked to a program called Cap-and-Trade. Understanding this concept is necessary to begin effective trading. A central authority (usually a government or international body) sets a limit or cap on the amount of emissions discharged into the atmosphere. Companies that exceed the cap may be subject to fine or regulatory sanction. Therefore, those who find they cannot meet the conditions of the cap will look to buy credits from those who pollute less.

Many older established companies are forced to spend considerable sums of money modernizing plants. In many instances this takes time, usually years to achieve. In contrast to new generation technologies which are not faced with up-grading facilities to comply with 1990 emission standards. Trading emission credits is a way for low emission companies such as wind farms to sell credits to benefit higher emitting companies. Cap-and-trade programs ultimately aid in being a net benefit to the host country by enabling it to meet it’s commitment to the Kyoto Protocol Agreement.

From the very beginning, this first phase of the European Union Emissions Trading Scheme, or EU-ETS, was intended to be a learning period to work out the kinks and entice major greenhouse gas emitters on board.

On January 1, 2005, the EU-ETS came online with the cap-and-trade program covering approximately 12,000 installations including electricity production and some heavy industry. These 27 member countries of the European Union represents roughly 45 percent of total European CO2 emissions.

Now three years later, amid a flurry of expectations and public controversy, the European Union has credible results to back up its claim of success. Recently, a Massachusetts Institute of Technology analysis of the EU Emissions Trading Scheme (ETS) affirms that despite rather unstable beginnings, the system has been an unprecedented success. More importantly, it opens the door for skeptical countries like the United States to follow suit.

The United States would have been required to reduce its emissions 7 percent below 1990 levels had it accepted ratification of Kyoto. Instead, U.S. emissions have now risen more than 16 percent between 1990 and 2005.

The Bush administration and Republican lawmakers opposed to emission caps have been touting the Asia-Pacific Partnership on Clean Development and Climate, which consists of Australia, China, India, Japan, South Korea, and the United States. The aim of the initiative, which began in 2005, is to foster cooperation on ways to improve clean energy development and lower emissions without global mandates. But since the initiative started, the United States, India, and China have come under increased domestic pressure to move toward mandatory emission controls. California is among several U.S. states that have entered into partnerships or passed laws for controlling greenhouse gases ahead of the federal government, leading to a showdown with congressional lawmakers. Major U.S. cities have also instituted a host of policies designed to cut greenhouse gases.

Without the United States entering into a binding commitment, it is feared that several developing countries which have not yet signed plus some Kyoto signatories may be unwilling to agree to additional international commitments.