Blowing in the wind
The big two sellers of carbon credits are China and India- as coincidence would have it- the two most populous countries on the planet. China has the most credits because they have engineered major chemical projects using wind power. They have also done alot of coal mine methane projects and base heavy industries on renewable energy. While it is not surprising China and India lead the globe in the supply of carbon credits it does come as a bit of shock that Brazil, with a relatively small population, comes in at number three.
Signing up
To sell carbon credits companies must register with the UN. This can be done for a seven-year or ten-year period. A seven-year registration can be renewed twice for a total of 21 years. Once registered, companies are required to submit an annual report to the UN which shows reductions in CO2 levels. The UN audits the report and issues credits equal to the number of tons of emissions that have been cut. One credit equal to one ton of CO2.
The UN issues these credits into an electronic account which are transferred in the same way bonds. certificates issued by the UN are basically traded as a commodity. there are six greenhouse gase which are eligible for carbon credits: CO2, CH4, N2O, HFC, PFC and SF6. Indonesia is full of areas with high potential in carbon credits. These include the power sector, (geothermal, biomass, hydro, wind, gase), energy-intensive sector (steel and cement), coal mine methane(flare or power generation), collection and utilization of associated gase on oil rigs, fuel switching (power plants), municipal solid-waste (incineration/composting) and methane projects (wastewater treatment, decomposition of agricultural wastes).
Simple solutions
Put simply, agrienergy identifies companies stinking up the environment. It tells them how to clean-up their act and make money at the same time. Unfortunately, the reality is far more complex. Agrinergy identifies projects and working closely with clients, develops a project design document. If necesary this includes methodology, baseline studies and monitoring plans. From here a host-goverment approval is necessary. The company attends the validation site where the document are processed by the Designated Operational Entity (DOE). The DOE then issues a certified emission reduction (CER) which is in turn sold by Agrinergy to companies in Europe, Canada or Japan.
The reduced emission is awarded with carbon credits in the form of CER which can be sold to goverments or companies in the industrialized world whose emissions have over-shot their targets. For example, a carbon reduction project in India successfully reduces emissions and converts these to a CER. These can be sold to a company in England that has passed its emission target or wishes to stockpile carbon credits. In order to avoid a goverment fine the english company purchases carbon credits.
Credits are measured us "allowances". "So, if they don't have enough allowances they get fined 100 uero/ton. These power station are generating 10 million tons/year so if they have to pay a 100 euro/ton it's a big money."
Indonesia, China, India, Malaysia, Vietnam and Brasil are considered growing nation and have no ceiling limits on carbon emissions. So, if you have a project with produces the level of growth and reduces the carbon intensity in Indonesia. You can potentialy qualify this project with the UN to get the carbon credits.
What can we do to reduce polution?????
