Carbon Credit Information
Companies that choose to participate in carbon credit programs are allowed to emit a certain amount of greenhouse gases each year, according to Bnet.com. Companies are not allowed to release more greenhouse gases if they do not have enough carbon credits. If companies do not use all of their carbon credits, they can sell their remaining credits to a company that's used up all their credits.
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Considerations
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Japan is one company that participates in an international carbon credit program. Some countries have chosen to participate in international carbon credit programs, according to Bnet.com. This works the same way as for companies; countries that do not use up their carbon credits can sell their remaining credits to another country. This international environmental agreement was known as the Kyoto Protocol. The United States did not sign this international environment agreement.
In the United States, corporate participation in carbon credit programs is voluntary. One example of a voluntary corporate carbon credit program is the Chicago Climate Exchange.
Carbon offsetting is another area of the carbon credit market. Carbon offsetting involves middleman companies called offset firms that act as brokers. These brokers offer companies carbon-reducing projects around the world. Companies can then increase their carbon credits by using these projects to reduce the net amount of carbon they're releasing into the atmosphere. Carbon offsetting is not yet regulated by governments around the world.
Benefits
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Carbon credit programs help companies save money. Carbon credit programs help reduce the emission of greenhouse gases. American companies like DuPont, Ford and IBM are voluntarily participating in carbon credit programs in the United States. Companies that participate in carbon credit programs can actually save money. As of 2008, BP reported it saved $650 million through carbon reduction strategies.
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Potential
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Governments around the world are pressuring each other to adopt carbon credit programs. Carbon credit programs have the potential to reduce the emission of greenhouse gases and slow global warming. There is currently no national cap on carbon emissions in the United States, but it's possible one will be imposed in the future as carbon credit programs continue to grow in popularity in the international community. Governments around the world are beginning to demand emission compliance.
Fun Fact
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Young professionals say they want to have a positive impact on the environment. Approximately 80 percent of young professionals state they want their work to impact the environment in a positive way, according to Bnet.com.
Significance
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Global warming is resulting in melting of the polar ice caps. Global warming is resulting in the melting of polar ice caps, which could cause massive coastal flooding. Global warming is caused by greenhouse gases and the greenhouse effect. Carbon credit programs help to reduce greenhouse gases and slow global warming.
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References
Resources
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