“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.

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.)

“A carbon offset or (carbon credits) is assumed to be a financial instrument which shows greenhouse gases emission reduction and helps us to take personal responsibility for the environmental consequences of our activities.”

Carbon dioxide (CO2) is the most important greenhouse gas produced by human activities, primarily through the combustion of fossil fuels such as oil, natural gas, and coal. As a result of tremendous world-wide consumption of such fossil fuels, the amount of CO2 in the atmosphere has increased over the past century which ultimately resulted in a global warming, the prime suspect in the greatest mass extinction of all time – wiping out 95% of all life forms on the planet.

We all are responsible to add CO2 and ultimately the global warming. Carbon footprint is a measure of the impact of our activities on the environment, and in particular on climate change. It relates to the amount of greenhouse gases we are producing in our day-to-day lives through burning fossil fuels for electricity, heating, transportation etc.

As the Global Warming issues are getting attention of the masses, people are seeking a perfect solution to handle the situation before it becomes too late.Carbon offsets are becoming an increasingly popular way for individuals and businesses to participate in solutions to global warming. Carbon offsets help us to balance out our carbon footprint easily and effectively in a more peaceful manner. Offsetting emissions is a process whereby an individual or organisation purchases carbon credits to neutralise its global warming impact. Each carbon credit represents the abatement or sequestration of one tonne of CO2-equivalent greenhouse gases – or carbon emissions – from our atmosphere.

The basic idea behind carbon offsetting is that you pay to fund projects that neutralise CO2 emissions produced by you. You invest your contributions towards greenhouse gases reduction through projects which produce clean energy that replaces the energy production from fossil fuel. Wind farms project is a good example of such projects. Other types of offsets available for sale on the market include those resulting from energy efficiency projects, methane capture from landfills or livestock, destruction of potent greenhouse gases such as halocarbons, and carbon sequestration projects (through reforestation, or agriculture) that absorb carbon dioxide from the atmosphere.

Carbon credits allow us to become more “Carbon Neutral”. You may be doing everything that you possibly can to reduce your carbon footprint, but it still might not be enough. Despite your energy saving, recycling and green transportation efforts at home and at work, you still may feel like you are not adequately reducing your carbon footprint. In this situation you can consider buying carbon credits for the more promising results and peace of mind at the same time. When you purchase carbon credits you help lower your carbon footprint and you prevent global warming. Before you purchase your carbon credits always make sure that the organization you are supporting is legit and is truly helping the environment.

Carbon credits are becoming a key component of national and international attempts to mitigate the growth in concentrations of greenhouse gases. There are many benefits for a business to reduce their carbon footprint and become carbon neutral when skyrocketing energy costs eat into profits. A carbon credit is the best way to help individuals and companies reduce their carbon dioxide emissions by offsetting them in a more environmentally friendly way.

Companies and individuals rushing to go green have been spending millions on ‘carbon credit’ projects that yield few if any environmental benefits.

A recent investigation has uncovered widespread failings in the new markets for greenhouse gases, suggesting some organisations are paying for emissions reductions that do not take place. Others are meanwhile making big profits from carbon trading for very small expenditure and in some cases for clean-ups that they would have made anyway.

The growing political salience of environmental politics has sparked a ‘green gold rush’, which has seen a dramatic expansion in the number of businesses offering both companies and individuals the chance to go ‘carbon neutral’, offsetting their own energy use by buying carbon credits that cancel out their contribution to global warming.

The burgeoning regulated market for carbon credits is expected to more than double in size to about $68.2bn by 2010, with the unregulated voluntary sector rising to $4bn in the same period.

The investigation found:

1) Widespread instances of people and organisations buying worthless credits that do not yield any reductions in carbon emissions.

2) Industrial companies profiting from doing very little – or from gaining carbon credits on the basis of efficiency gains from which they have already benefited substantially.

3) Brokers providing services of questionable or no value.

4) A shortage of verification, making it difficult for buyers to assess the true value of carbon credits.

5) Companies and individuals being charged over the odds for the private purchase of European Union carbon permits that have plummeted in value because they do not result in emissions cuts.

Some companies are benefiting by asking ‘green’ consumers to pay them for cleaning up their own pollution. For instance, DuPont, the chemicals company, invites consumers to pay $4 to eliminate a tonne of carbon dioxide from its plant in Kentucky that produces a potent greenhouse gas called HFC-23. But the equipment required to reduce such gases is relatively cheap.

The investigation has also found examples of companies setting up as carbon offsetters without appearing to have a clear idea of how the markets operate. One offsetting company invites consumers to offset carbon emissions by investing in enhanced oil recovery, which pumps carbon dioxide into depleted oil wells to bring up the remaining oil. However, the company said that because of the high price of oil, this process was often profitable in itself, meaning operators were making extra revenues from selling ‘carbon credits’ for burying the carbon.

There is nothing illegal in these practices. However, some companies that are offsetting their emissions have avoided such projects because customers may find them controversial.

When one mentions the word global warming, an image of Jeremy Clarkson defending the usage of cars and denying their impact onto the environment comes into mind! The UK alone has become aware of the impending doom of the earth’s temperature rising by five degrees by the end of the century, causing rising sea levels, famine, drought and an increase in unpredictable weather conditions. As much as many believe that this is something of a myth, it is in fact something that is affecting us today.

When people are not aware of the adverse result of global warming the thought of global warming becomes something of an annoyance. However, many people have seen the carbon footprint adverts on TV and will question what this is about. How does one measure their own carbon footprint in their homes and what should one do to improve their carbon management? These are just a couple of questions arising from the doom of global warming, which I intend to answer in the simplest manner.

Businesses, companies, homes, schools and hospitals all contribute to global warming and are all subject to better carbon management. A carbon footprint is the measurement of carbon dioxide released and impacted by human activity. This measures how much humans affect the earth in terms of releasing greenhouse gases. Carbon emissions can be in the form of using your car, keeping lights on in the house unnecessarily, using too much electricity (such as keeping your computer on for prolonged periods of time) and much more.

Steps can be made to reduce the amount of carbon emission in the form of keeping the general everyday usage of things that may emit a higher level of carbon into the atmosphere at low number. The government began steps after the Kyoto Protocol which was aimed at legally binding targets to reduce the amount carbon emissions from main cities and surrounding areas. Working towards reducing the amount of greenhouse emissions is just one step to preventing the effects of global warming.

The media have also played an important role in passing on information about carbon emissions. Often some of the information can be distorted with myths on what can be construed as leaving your carbon footprint. Larger industries and businesses emit the most amount of carbon dioxide, which is much of the carbon management strategies are aimed at reducing carbon emissions in a typical office setting.

The most effective way of reducing carbon emissions is through automating the monitoring process, which will work on monitoring a live emission of carbon throughout the day. This will also enable companies to take control of how much energy they use from their equipment. Reducing carbon emissions from home can be as simple as switching your electricity company to another company which uses renewable sources. Also simple measures such as recycling basic materials such as paper, card, plastic and glass will help. Other instances such using your car less to travel to local areas, keeping your water usage controlled and not wasting water usage.

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.