Carbon Credits for Green Technology
Carbon credits do exist for green technologies. But, as of February 2010, there is no legal requirement (at least in the U.S.) ensuring that the use of green technologies gives the owner carbon credits. Nor does the purchase of carbon credits mean that money will be invested in green or sustainable technologies.
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Carbon Credit Programs
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In 2008, Minnesota Gov. Tim Pawlenty (R), signed an executive order to plan for a future carbon trading program. But likely the most progressive carbon-credit program in the U.S. is the Regional Greenhouse Gas Initiative (RGGI) of Northeast and Mid-Atlantic States. States participating in the initiative include: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.
RGGI Carbon Dioxide Reduction
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The RGGI capped carbon dioxide emissions in participating states and will use a carbon auction and credit system to reduce or offset CO2 emissions from the power sector 10 percent by 2018. Under the system, power plants can offset their CO2 production through four methods: capture and destruction of landfill methane; carbon sequestration through afforestation; reduction or avoidance of CO2 emissions "from natural gas, oil or propane end-use combustion due to end-use energy efficiency in the building sector;" or avoiding agricultural methane emissions.
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Voluntary Carbon Credit Programs
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Small wind turbine. MicroEnergy Credits is just one of a number of companies that allows people to offset their carbon use by investing in microloans that support sustainable energy projects and/or reforestation and other carbon sequestration projects in developing countries. The organization verifies that the green technology is properly implemented.
Europe's Cap-and-Trade Carbon Sequestration Program
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The European Union established a carbon cap-and-trade program in 2005, the goal being to reduce over time the amount of emissions that can be produced by polluting countries. At the same time, polluters would move to green technologies that reduce emissions. But the program is criticized for allowing too many carbon credits into the market. According to the New York Times, about 10 billion excess carbon credits exist that could be cashed-in as of October 2009.
U.S. Cap-and-Trade Carbon Credits
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The Obama administration, in early 2010, asked Congress to endorse a market-based strategy to fight climate change. It is likely that Congress will adopt a carbon-credit trading strategy that will allow investments in green technologies and renewables.
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References
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- Photo Credit kohlekraftwert image by Stephanie Bandmann from Fotolia.com wind power 2 image by Warren Millar from Fotolia.com
