A Carbon Footprint is a measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.
A Carbon Footprint is made up of the sum of two parts, the direct / primary footprint and the indirect / secondary footprint.
1. The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels including domestic energy consumption and transportation (e.g. car and plane).
2. The secondary footprint is a measure of the indirect CO2 emissions from the whole lifecycle of products we use - those associated with their manufacture and eventual breakdown.
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carbon footprint, carbon footprint calculator, calculate carbon footprint
Friday, December 28, 2007
Sunday, December 23, 2007
Carbon Trading: The World's Next Biggest Market
The New York Times recently ran an article claiming that "carbon will be the world's biggest commodity market, and it could become the world's biggest market overall."
Rest assured, it will be.
Currently valued at over $30 billion, the carbon trading market is set to skyrocket to over $1 trillion as the price of carbon becomes more and more valuable.
And it's possible to get a piece of this infant industry right now.
Early investors can play the burgeoning carbon market by:
1. Investing in carbon credits themselves, or2. Investing in companies that are making extra cash by reducing their emissions
There's no telling just how lucrative this market will become. Why else would huge companies like GE, DuPont, and Johnson & Johnson be racing to reduce their emissions?
Rest assured, it will be.
Currently valued at over $30 billion, the carbon trading market is set to skyrocket to over $1 trillion as the price of carbon becomes more and more valuable.
And it's possible to get a piece of this infant industry right now.
Early investors can play the burgeoning carbon market by:
1. Investing in carbon credits themselves, or2. Investing in companies that are making extra cash by reducing their emissions
There's no telling just how lucrative this market will become. Why else would huge companies like GE, DuPont, and Johnson & Johnson be racing to reduce their emissions?
Wednesday, December 19, 2007
It sounds attractive - does it work as a way of dealing with climate change?
Trading, whether between companies or countries, only works if emissions are reduced enough to contain global warming. Creating a market does not, by itself, reduce emissions.
Moreover, the benefits could be severely limited if trading is not comprehensive.
As important as what or who is included is what is not included.
Carbon dioxide represents only part - albeit a crucial part; more than 70% - of all greenhouse gases.
Furthermore, the US, the world's largest CO2 polluter, excluded itself by choosing not to ratify Kyoto.
And while the US is the biggest emitter today, China, which is projected to exceed the US in emissions by mid century, has no obligation to reduce emissions.
Even within trading schemes such as the ETS, whole sectors' emissions are excluded, such as transport, homes and the public sector.
Aviation is the fastest-growing source of CO2 emissions, and some experts have calculated that if it were included, the UK's entire allowance would soon be used up.
Critics say trading carbon condones the idea of "business as usual" and fails to emphasise the need to invest in renewable energies and move away from fossil fuels.
Trading, while it may acknowledge the threat posed by global warming, does not address the seriousness and scale of the problem, argue environmentalists.
For trading to work it would have to become much broader - perhaps even embracing personal carbon allowances for individuals, some say.
More and more scientists are saying that the carbon dioxide ceilings under the treaty are too high - perhaps far too high - to help avert serious climate change.
http://officialglobalwarming.blogspot.com/
Moreover, the benefits could be severely limited if trading is not comprehensive.
As important as what or who is included is what is not included.
Carbon dioxide represents only part - albeit a crucial part; more than 70% - of all greenhouse gases.
Furthermore, the US, the world's largest CO2 polluter, excluded itself by choosing not to ratify Kyoto.
And while the US is the biggest emitter today, China, which is projected to exceed the US in emissions by mid century, has no obligation to reduce emissions.
Even within trading schemes such as the ETS, whole sectors' emissions are excluded, such as transport, homes and the public sector.
Aviation is the fastest-growing source of CO2 emissions, and some experts have calculated that if it were included, the UK's entire allowance would soon be used up.
Critics say trading carbon condones the idea of "business as usual" and fails to emphasise the need to invest in renewable energies and move away from fossil fuels.
Trading, while it may acknowledge the threat posed by global warming, does not address the seriousness and scale of the problem, argue environmentalists.
For trading to work it would have to become much broader - perhaps even embracing personal carbon allowances for individuals, some say.
More and more scientists are saying that the carbon dioxide ceilings under the treaty are too high - perhaps far too high - to help avert serious climate change.
http://officialglobalwarming.blogspot.com/
How is carbon traded?
There are two main ways to exchange carbon.
The first is what is called a cap-and-trade scheme whereby emissions are limited and can then be traded. Under Kyoto developed countries can trade between each other.
The European Trading Scheme (ETS) is a cap-and-trade scheme and the largest companies-based scheme around.
It is mandatory and includes 12,000 sites across the 25 European Union member states.
It came into force in 2005 and covers heavy industry and power generation, including non-European companies.
There are also voluntary cap-and-trade schemes.
The Chicago Climate Exchange (CCX) is such a scheme.
Interest in carbon trading at regional level is increasing in America, even though the US government has decided not to ratify Kyoto.
The UK also has its own voluntary scheme, for which companies cut their emissions in return for incentive payments.
The second main way of trading carbon is through credits from projects that compensate for or "offset" emissions.
The Kyoto protocol's Clean Development Mechanism (CDM), for example, allows developed countries to gain emissions credits for financing projects based in developing countries.
A Kyoto mechanism called Joint Implementation (JI), also involves project-based schemes whereby one country can receive emissions credits for financing projects that reduce emissions in another developed country.
Compliance is critical.
Under their Kyoto obligations, industrialised countries have 100 days after final annual assessments to pay for any shortfall - by buying credits or more allowances via emissions trading.
Failure to do so leads to further penalties.
In voluntary schemes, by contrast, this is not the case.
http://officialglobalwarming.blogspot.com/
The first is what is called a cap-and-trade scheme whereby emissions are limited and can then be traded. Under Kyoto developed countries can trade between each other.
The European Trading Scheme (ETS) is a cap-and-trade scheme and the largest companies-based scheme around.
It is mandatory and includes 12,000 sites across the 25 European Union member states.
It came into force in 2005 and covers heavy industry and power generation, including non-European companies.
There are also voluntary cap-and-trade schemes.
The Chicago Climate Exchange (CCX) is such a scheme.
Interest in carbon trading at regional level is increasing in America, even though the US government has decided not to ratify Kyoto.
The UK also has its own voluntary scheme, for which companies cut their emissions in return for incentive payments.
The second main way of trading carbon is through credits from projects that compensate for or "offset" emissions.
The Kyoto protocol's Clean Development Mechanism (CDM), for example, allows developed countries to gain emissions credits for financing projects based in developing countries.
A Kyoto mechanism called Joint Implementation (JI), also involves project-based schemes whereby one country can receive emissions credits for financing projects that reduce emissions in another developed country.
Compliance is critical.
Under their Kyoto obligations, industrialised countries have 100 days after final annual assessments to pay for any shortfall - by buying credits or more allowances via emissions trading.
Failure to do so leads to further penalties.
In voluntary schemes, by contrast, this is not the case.
http://officialglobalwarming.blogspot.com/
How big is the market today?
Exact figures are hard to come by because the market is still fairly new, since data is not easily available and since several different schemes exist, not all directly comparable.
The World Bank, one of the main players in carbon financing, estimates the value of carbon traded in 2005 to be about $10bn.
The Bank believes the carbon market has the potential to bring more than $25bn (£14bn) in new financing for sustainable development to the poorest countries and the developing world.
Trading firms, brokers and banks are among those expected to make money through commissions for organising carbon deals.
The Bank's own carbon finance fund has more than doubled from $415m in 2004 to $915m last year
http://officialglobalwarming.blogspot.com/
The World Bank, one of the main players in carbon financing, estimates the value of carbon traded in 2005 to be about $10bn.
The Bank believes the carbon market has the potential to bring more than $25bn (£14bn) in new financing for sustainable development to the poorest countries and the developing world.
Trading firms, brokers and banks are among those expected to make money through commissions for organising carbon deals.
The Bank's own carbon finance fund has more than doubled from $415m in 2004 to $915m last year
http://officialglobalwarming.blogspot.com/
Is carbon trading new?
The Kyoto protocol is the first scheme that includes global trading in greenhouse gases, but the idea of trading pollutants was first tried in the 1970s when the US decided to trade sulphur dioxide and nitrous oxide to tackle acid rain.
Neither is the idea of trading allowances for ecological protection new.
The European Union, under its Common Agricultural Policy, has for some time had schemes for trading national or local quotas, in dairy production or fishery catches
http://officialglobalwarming.blogspot.com/
Neither is the idea of trading allowances for ecological protection new.
The European Union, under its Common Agricultural Policy, has for some time had schemes for trading national or local quotas, in dairy production or fishery catches
http://officialglobalwarming.blogspot.com/
What is the idea behind carbon trading?
Carbon trading is a market mechanism intended to tackle global warming. Though it dates back to 1989 it only took off as a market after the Kyoto Protocol was signed. Under the Kyoto treaty - which came into force in February 2005 - industrialised countries must reduce total greenhouse gas emissions by an average 5.2% compared with 1990 levels between 2008-2012.
The most important greenhouse gas contributing to global warming is carbon dioxide, which is mainly emitted by burning fossil fuels. Under Kyoto, each participating government has its own national target for reducing carbon dioxide emissions.
Other reduction initiatives - not part of Kyoto - include company-based schemes, which also have specific targets.
The key idea behind carbon trading is that, from the planet's point of view, where carbon dioxide comes from is far less important than total amounts.
So, rather than rigidly forcing the reduction of emissions country-by-country, (or company-by-company), the market creates a choice: either spend the money to cover the costs of cutting pollution (emissions), or else continue polluting (emitting), and pay someone else to cut their pollution.
In theory this enables emissions to be cut with the minimum price tag.
http://officialglobalwarming.blogspot.com/
The most important greenhouse gas contributing to global warming is carbon dioxide, which is mainly emitted by burning fossil fuels. Under Kyoto, each participating government has its own national target for reducing carbon dioxide emissions.
Other reduction initiatives - not part of Kyoto - include company-based schemes, which also have specific targets.
The key idea behind carbon trading is that, from the planet's point of view, where carbon dioxide comes from is far less important than total amounts.
So, rather than rigidly forcing the reduction of emissions country-by-country, (or company-by-company), the market creates a choice: either spend the money to cover the costs of cutting pollution (emissions), or else continue polluting (emitting), and pay someone else to cut their pollution.
In theory this enables emissions to be cut with the minimum price tag.
http://officialglobalwarming.blogspot.com/
Tuesday, December 11, 2007
GlobalCarbon Trading Market
The global market in carbon trading tripled last year to $30bn (£15bn) but its role in the battle against climate change could be hit by worries about the effectiveness of unregulated carbon offset projects, the World Bank warned yesterday.
The bulk of carbon trading, some $25bn, was carried out through the sale of allowances under the European Union's emissions trading scheme - which covers industries pumping out large amounts of carbon dioxide - according to the bank's seventh annual carbon market intelligence study which was published yesterday.
Officially-backed carbon offset projects, where, under the Kyoto agreement, companies and countries can invest in emission reduction schemes in developing countries and economies in transition, doubled to $5bn, the report said.
The World Bank also estimated that carbon purchases have raised $14bn in "associated investments" supporting clean energy in developing countries since 2002.
"These numbers are relevant because they demonstrate that the carbon market has become a valuable catalyst for leveraging substantial financial flows for clean energy in developing countries," Warren Evans, the World Bank's director of environment said.
"The greenhouse gas markets continued to grow and mature in 2006," Jack Cogen, president of Natsource LLC, an emissions and renewable energy asset management firm, said.
"In 2006 we saw growing activity in this asset class not only from industrial companies, but also from newer participants, like commercial firms, banks and financial institutions that recognise the attractiveness of this market for managing risks and earning returns on capital."
Carbon trading is seen as a market based alternative to either direct taxation or a "command and control" approach which would directly impose emission limits.
However the EU's emission trading scheme has come in for criticism because allowances under the initial phase proved too generous, causing a fall in the carbon price, offering little incentive to cut emissions. Allocations have been toughened for the second phase, which runs from 2008 to 2012. Supporters believe the new levels will make the system more effective and that the European model could provide the hub of a global carbon trading mechanism in coming years.
As well as reducing emissions in developed economies, policymakers are hopeful that carbon trading will help provide the finance to clean up heavy industry in poor countries where economic expansion is set to increase emission levels.
The World Bank cautioned that moves in carbon offsets outside the regulated "cap and trade" systems could pose a threat to the development of the overall market. There has been growing criticism that schemes where companies or individuals seek to offset their emissions by investing in projects to cut emissions elsewhere, are either not delivering or funding developments that would have been financed anyway. Critics say that the system needs a greater degree of standardisation.
The World Bank said that on some estimates voluntary carbon offset schemes could rise to 400m tonnes by 2010. It added: "This high potential voluntary sector, however, lacks a generally acceptable standard, which remains a significant reputation risk not only to its own prospects, but also to the rest of the market, including segments of regulated emissions trading and project offsets."
The concern was underlined yesterday by Yvo de Boer, the head of the UN Climate Change secretariat.
He said the official clean development programme (CDM) was working well but some analysis of the scheme was failing to differentiate between the highly regulated CDM and a growing number of unregulated or self regulated enterprises. "Some confusion can be expected, but some analysis of the CDM
The bulk of carbon trading, some $25bn, was carried out through the sale of allowances under the European Union's emissions trading scheme - which covers industries pumping out large amounts of carbon dioxide - according to the bank's seventh annual carbon market intelligence study which was published yesterday.
Officially-backed carbon offset projects, where, under the Kyoto agreement, companies and countries can invest in emission reduction schemes in developing countries and economies in transition, doubled to $5bn, the report said.
The World Bank also estimated that carbon purchases have raised $14bn in "associated investments" supporting clean energy in developing countries since 2002.
"These numbers are relevant because they demonstrate that the carbon market has become a valuable catalyst for leveraging substantial financial flows for clean energy in developing countries," Warren Evans, the World Bank's director of environment said.
"The greenhouse gas markets continued to grow and mature in 2006," Jack Cogen, president of Natsource LLC, an emissions and renewable energy asset management firm, said.
"In 2006 we saw growing activity in this asset class not only from industrial companies, but also from newer participants, like commercial firms, banks and financial institutions that recognise the attractiveness of this market for managing risks and earning returns on capital."
Carbon trading is seen as a market based alternative to either direct taxation or a "command and control" approach which would directly impose emission limits.
However the EU's emission trading scheme has come in for criticism because allowances under the initial phase proved too generous, causing a fall in the carbon price, offering little incentive to cut emissions. Allocations have been toughened for the second phase, which runs from 2008 to 2012. Supporters believe the new levels will make the system more effective and that the European model could provide the hub of a global carbon trading mechanism in coming years.
As well as reducing emissions in developed economies, policymakers are hopeful that carbon trading will help provide the finance to clean up heavy industry in poor countries where economic expansion is set to increase emission levels.
The World Bank cautioned that moves in carbon offsets outside the regulated "cap and trade" systems could pose a threat to the development of the overall market. There has been growing criticism that schemes where companies or individuals seek to offset their emissions by investing in projects to cut emissions elsewhere, are either not delivering or funding developments that would have been financed anyway. Critics say that the system needs a greater degree of standardisation.
The World Bank said that on some estimates voluntary carbon offset schemes could rise to 400m tonnes by 2010. It added: "This high potential voluntary sector, however, lacks a generally acceptable standard, which remains a significant reputation risk not only to its own prospects, but also to the rest of the market, including segments of regulated emissions trading and project offsets."
The concern was underlined yesterday by Yvo de Boer, the head of the UN Climate Change secretariat.
He said the official clean development programme (CDM) was working well but some analysis of the scheme was failing to differentiate between the highly regulated CDM and a growing number of unregulated or self regulated enterprises. "Some confusion can be expected, but some analysis of the CDM
Carbon Trading
What is Carbon Trading
Carbon Trading is a market based mechanism for helping mitigate the increase of CO2 in the atmosphere. Carbon Trading Markets are developing that bring buyers and sellers of carbon credits together with standardized rules of trade.
Who are potential buyers for Carbon Credits?
Any entity, typically a business, that emits CO2 to the atmosphere may have an interest or may be required by law to balance their emissions through mechanism of Carbon sequestration. These businesses may include power generating facilities or many kinds of manufacturers.
Who are potential sellers of Carbon Credits ?
Entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils. Similarly, business entities that reduce their carbon emission may be able to sell their reductions to other emitters.
Technorati Profile
Carbon Trading is a market based mechanism for helping mitigate the increase of CO2 in the atmosphere. Carbon Trading Markets are developing that bring buyers and sellers of carbon credits together with standardized rules of trade.
Who are potential buyers for Carbon Credits?
Any entity, typically a business, that emits CO2 to the atmosphere may have an interest or may be required by law to balance their emissions through mechanism of Carbon sequestration. These businesses may include power generating facilities or many kinds of manufacturers.
Who are potential sellers of Carbon Credits ?
Entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils. Similarly, business entities that reduce their carbon emission may be able to sell their reductions to other emitters.
Technorati Profile
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