ENVIRONMENTAL PROTECTION

Carbon Credits

It is one type of clean development mechanism (CDM). Through this mechanism, companies with projects in developing countries that reduce greenhouse gases emission, or even remove these gases from the atmosphere, will be able to sell this reduction to countries that need to be adjusted under the Kyoto Protocol. The standardized currency is the carbon equivalent, i.e. how many tons of carbon correspond to the reduction of the gas that we are aiming the emission reduction.

Greenhouse Gases are the gases responsible for the planet temperature raise and which are listed in the Annex A of Kyoto Protocol, which are: (i) carbon dioxide (CO2); (ii) methane (CH4); (iii) nitrous oxide (N2O); (iv) sulfur hexafluoride (SF6); and (v) families of gases hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs).

Kyoto Protocol is the complementary international legal instrument and it is linked to the United Nations Framework Convention on Climate Change, which introduces further elements to the Convention. Among the main innovations established by the Protocol, stand out commitments for quantified limitation or reduction of greenhouse gas emissions, as well as the mechanisms for additional implementing, among them the CDM.

A Carbon Credits assessment intends to research and characterize operations of a particular company, taking the national and international scene as benchmark, in order to allow its profitably insertion in the carbon credits market, by sequestrating carbon and or promoting the emission reduction. It can serve as the application basis to different business branches of the company concerned.