The Merits Of Trading In Carbon Credits

Carbon credits are tradable certificates or permits that represent the right to emit

a ton of CO2 (carbon dioxide) or any other greenhouse gas that has the carbon dioxide equivalent (or tCO2e) equivalent to one ton of CO2. Other than CO2, the other gases classified as greenhouse gases are nitrous oxide (N2O), sulphur hexafluoride (SF6), methane (CH4), hydroflourocarbons (HFCs), and perfluorocarbons (PFCs).

There are several reasons why you should consider trading in carbon credits. Carbon markets have been introduced as the international community tries to reduce emission of GHGs (greenhouse gases). Greenhouse gases, as the name suggests, form a greenhouse effect on the plant, leading to global warming. Global warming can be attributed to hotter summers, colder winters, the melting of snow caps, and rising sea levels. When you buy carbon credits, the money is used for such things as planting trees, meaning you will be taking pro-active action in protecting the environment.

You should reduce your carbon footprint because customers/clients and business partners will appreciate your efforts. You will therefore get greater ROI (return on investment). The government offers tax breaks and other incentives to companies that are doing their part to protect the environment.

Carbon offsetting is encouraging heavy polluters to lower their emissions so that they do not pay too much for carbon credits. This has led to a rise in the uptake of greener technologies and more efficient processes. Trading in carbon credits can be part of your large CSR (corporate social responsibility) initiative.

Carbon credits, called CERs or Certified Emission Reductions under Kyoto Protocols Under the Clean Development Mechanism or CDM, are well defined and the trade is well regulated. This means you get your moneys worth when you trade in carbon credits. The scheme is boosting economic development low-emitting countries and countries that have been most affected by climate change, which also happen to be the developing countries. New Frontier Advisory Limited are there to guide you in the trade and to answer any question that you may have

by: New Frontier Advisory

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