US Green Living .com
The air pollution is the most dreadful aspect in the modern era. With the increasing automobiles on the roads and factories coming up every day carbon emissions are going up every day with the global warming worsening further. A new scheme to control the air pollution by limiting the carbon emission called the Carbon credit system has been devised. The carbon credit is like permit based tradable policies for the countries that are
participating in this system. International treaties decide on the carbon credit allowances for each country based on the various factors such as its development status, size, industrial growth potential etc.
The countries then further plan out control of carbon emissions through local policies on the industries and businesses. These policies decide on the amount of carbon emission the business can be allowed to generate. However, certain businesses are allowed to buy the carbon credit of other businesses thereby evening out the total emission of the country within the limit. At times the carbon credits are exchanged between the international communities and countries also.
Need for carbon credit system: The carbon credit system aims to keep the global warming and carbon emissions within permissible norms. There are lot of critics and environmental protection agencies who have voiced their concern about its success in the practical application point of view. In principle, the carbon credit system helps to check the carbon emissions of each country through a process called the carbon foot printing. The anomalies between developed nations and the developing nations lead to conflicts in the optimal distribution of carbon credits. The developed nations are able to buy the carbon credits from poorer nations and still extend their range of carbon emission limits. However, in the global perspective, this carbon credit system places a check on the emissions of carbon and global warming. The power, steel and metallurgy industries are the prime business which come under the carbon credit system. The automobile industry is also brought under the carbon credit system in many countries with vehicle pollution check and certification policies in place.
There are also some international treaties that have evolved systems by which the developed and developing countries join hands and jointly take measures to reduce the carbon emissions.
Reducing emissions: The carbon credit system acts as a limit governor for the industries. The industries spend money to reduce the emissions to within the allocated limits or they reduce their emissions by reducing the production and hours of operation. Some industries also procure the carbon credit from open market or the international market and extend their carbon credit limit.
But the overall carbon credit from the global perspective remains the same.
This carbon credit system thus acts as a deterministic factor and a limit governor for the carbon emissions and global warming.
Importance: The carbon credit system is an important checking mechanism and is accepted globally. Apart from controlling and managing the carbon credit system, there is a even more important responsibility of measuring and actually verifying the carbon emission limits. Several methods and theories have been proposed to actually measure and keep control of the carbon credit system. These enhanced steps have laid the foundation for controlling the pollution caused by carbon emissions under control and preserving the environemt.
