subject: Escape the Footprint- Carbon Funds [print this page] Water vapor, methane, ozone, nitrous oxide, carbon monoxide and carbon dioxide are known as the greenhouse gases. Greenhouse gases are concentration of gases produced by emissions, combustions, and processes involving organic matter.
When these gases are released in the atmosphere, it absorbs the sun's energy, emits it to all directions, back to the sun and to the Earth's surface, keeping Earth warm and suitable for life. When concentration of greenhouse gases increase due to man-made emissions, this in turn causes the Earth's surface temperature to increase known as global warming. Global warming causes problems not only in the environment but in all aspects as well.
Furthermore, it is known that when carbon dioxide is separated, it is easily absorbed by plants, trees and water bodies and contributes to the rapid growth of the plant kingdom by 50%. Scientists discovered that this is a possible way to decrease excessive greenhouse effect. So in 1994, the UN Framework Convention on Climate Change (UNFCCC) was adopted as a solution to global warming. On the 3rd Conference of the Parties to the UNFCCC, the Kyoto Protocol was adopted, it was known as an international treaty aimed at stabilizing greenhouse gas concentrations. A total of 169 countries ratified the agreement, and the protocol included Emission Trading, Joint Implementation and Clean Development Mechanism (CDM).
This gave birth to Emission Trading, which permits involved parties to trade emission credits and carbon trading by reducing dangerous emission in exchange for money. These have become an opportunity for developing countries. The carbon procurement vehicle also known as carbon fund, became a form of investment strategy that receives money from investors and the money is used to buy carbon credits or to invest in to greenhouse gas reduction projects such as Kyoto Protocol's CDM and Joint Implementation (JI).
Due to these events, carbon funds have become active participants in the carbon market and in the world.
