Carbon Emissions Trading Markets

What is a Carbon Emissions Trading Market?

Thinking about a Carbon Emissions Trading Market as a market place where Carbon Permits are Bought and Sold. Sellers offer to sell their permits and buyers offer to buy them.

Why  do Carbon Permits exist and why were they invented?

Businesses, governments, mining companies, electricity and power companies, manufacturers, cars, trucks, planes, boats, trains, cement manufacturers, farmers, animals and people pollute the earths atmosphere with Carbon Emissions- in some way or another. We can call them ‘carbon polluters’ and we need to reduce their carbon emissions, so that we can combat climate change. Therefore, most countries have agreed to work together and impose a financial cost, or a penalty, for every ton of carbon emissions they release into the atmosphere.

It is a ‘user pays’ system. Every Carbon Permit equals only one ton of carbon emissions. If someone releases two tons of carbon emissions into the atmosphere, that polluter should buy two permits to off-set their carbon pollution. The international community favours this ‘user pays ‘ penalty system because it encourages innovation, new technology  and the search for alternatives to polluting the atmosphere. The high cost to buy Carbon Permits drives the need to discover alternatives. It drives technological and scientific advancement towards  alternatives to practices which emits carbon pollution. Carbon emissions are known as Carbon Footprints’.

Think about the growth of online shopping. For example, Coles, Woolworths, Wal-Mart, Harvey Norman, Cosco, Harrods, SM and thousands more on line stores. Online shopping reduces car travel and fuel consumption, and therefore carbon emissions. In time we may all buy our necessities through online shopping services; which reduces car use and carbon emissions.An example of an alternative is to increase the price of petrol and diesel cars and the fuel to power them.  If these costs become too high car manufacturers are forced to invent better and new technology, which they are already doing in the form of hybrid cars and on board computers. Other examples are LED lighting in place of incandescent globes and solar power and wind power; all of which reduce coal burning for electricity generation, which in turn reduces carbon emissions.

Online Shopping_2

Where do Carbon Permits come from?

Carbon Permits come from a variety of projects which create measurable and auditable reductions in carbon emissions.  Examples include: 

  • Projects which replace dirty fossil fuels (coal) with renewable energy technology, such as solar or wind power generators. These are usually very high cost projects beyond the capacity of oridinary people.
  • Another source of carbon permits is from developing new technology which treats contaminated water and reduces direct release of carbon emissions because they do not burn firewood (to boil water).
  • Perhaps one of the the most important, manageable and commercial sources of Carbon Permits come from REDD+forestry regeneration and food production projects in which the trees sequester and store carbon captured from the atmosphere, integrated with farming projects on land that has already been cleared of trees.
Farming and forestry Farming and forestry_1

The atmosphere has no border. It does not matter where carbon emissions reduction projects are located, what matters is that they reduce the global amount of carbon emissions while at the same time, the projects provide income making opportunities for CPRSX’s landowner JV Partners’.