- Politics and Social Issues
Carbon Credit Benefits and Kyoto Agreement
Carbon Credit Program
The world is working to overcome the global warming and decaying Mother Nature. There are discussions, writings and speeches going on endlessly but doesn’t make much change to the world. But the change started to happen when industrialists and businesses understand the importance of carbon credit. They started to hunt down the green house gas emissions when they learn about the millions of profit they can earn from the carbon credit.
India and China earned much from the possibilities of carbon credit program. Earnings for protecting the environment are the main attraction of the program. Understanding the importance of green houses gases world countries joined at Kyoto, Japan in 1997 to take a decision. They decided that the level of green house gases like carbon dioxide, methane and nitrous oxide produced from the industries should be below than what it was in the late 90’s. For this every country should take efforts.
Industries got only two options to control the green house gas emissions. First one was to accept the latest technologies and equipments or otherwise to make the necessary changes in the equipments to keep the rules and regulations of Kyoto guidelines. But both of them were not practical for the companies in the developed countries. So they started the new economic term and called it as carbon credit.
Benefits of Carbon Credit
The objective of carbon credit is to share the expenses with the industries in developing countries to control the green house gases and achieve the benefits to developed countries through developing countries. In this mechanism the industries in developing countries will be helped by developed country to make necessary changes in industries to favour the nature. It opened an income source for the industries in developing countries.
Various factories, farms and plants in India and China had already got the benefits of carbon credit. Carbon credit has to be earned in accordance with the guide lines of United Nations Framework Convention on Climate Change (UNFCCC). Industries will get grant from developed countries if UNFCCC find that particular industries are following the procedures of UNFCCC in the production process.
In 2011 the metro rail of Delhi was awarded as the best carbon credit by UNFCCC and it is the first metro rail in the world to receive this award. The metro rail corporation has reduced the waste production of around 6.3 million ton per year and the now the Delhi Metro will receive 47 crore per year as carbon credit.
Carbon credit got its promotion due to the disagreement of some of the developed European countries including America to join the Kyoto agreement. The objective of Kyoto agreement was to give a support to overcome the effects of global warming in the earth. European countries were ready to support this cause due the risk involved because it will create inconsistency for the existence of their industries. European industries don’t want to decrease the production in order to reduce the green house gas emissions. Thus America and some European countries didn’t sign the Kyoto agreement.
To protect the earth from the harmful green house gases the first world countries introduced the solution of carbon credit. The developed countries had only two choices from the UNFCCC either reduce the emissions of carbon or buy the carbon credit from developing countries. Understanding that the first option will create huge loss to their industry they selected the second option and it became a blessing to the third world countries. Big companies in Europe started to exchange the environment friendly technologies to industries in developing countries and earn carbon credit from them.
Carbon credit program is expected to end in 2012 but we have to live in this world there after also. So we should make efforts to reduce the use of green house gas emissions in our daily life and make our life better now and for the future generations.