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Hi Peers, Can somebody explain the difference among Carbon Credit, Carbon Offsetting, Carbon Footprint and Carbon Tax? I have read these terms in Shankar Environment and in internet too, but not able to differentiate them due to lack of clarity. ~X(
Carbon Footprint: Total emission of GHGs over a period of time by any individual, group, org etc.
Carbon Offsetting: Reduction of emission of GHGs to compensate for the emission of GHGs made elsewhere or, offset emission of GHGs.
Carbon Tax: Tax levied on the carbon content of the fuels(like coal, petro, gas). Please refer Chap 9, Eco Survey, Vol I for further reading on current scenario.
Carbon Credit: In brief, this is basically carbon market (origin: Kyoto Protocol). Annex I or developed countries are given quotas or permission to emit certain tonnes of GHGs. They in turn distribute this quota within their own units. Those unit who hasn't utilized the emission quota can trade it with other players, privately or in international market. Industrial houses that have exhausted their quota buy this carbon credits.
Just an eg here, suppose quota allotted to both India and Singapore is 50,000 tonne of GHGs(CO2). Singapore, because of its superior technology, has emitted only 20,000 tonne of GHGs and as such is left with a surplus quota of 30.000 tonne. India can very well buy this surplus quota from Singapore. This is the gist of carbon trading.
@Mooreeze : Excellent bro for sharing such crystal clear information. I hope some publishers of eminent books on Environment will take a note and modify it with your explanation. ^:)^
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Comments
Carbon Offsetting: Reduction of emission of GHGs to compensate for the emission of GHGs made elsewhere or, offset emission of GHGs.
Carbon Tax: Tax levied on the carbon content of the fuels(like coal, petro, gas). Please refer Chap 9, Eco Survey, Vol I for further reading on current scenario.
Carbon Credit: In brief, this is basically carbon market (origin: Kyoto Protocol). Annex I or developed countries are given quotas or permission to emit certain tonnes of GHGs. They in turn distribute this quota within their own units. Those unit who hasn't utilized the emission quota can trade it with other players, privately or in international market. Industrial houses that have exhausted their quota buy this carbon credits.
Just an eg here, suppose quota allotted to both India and Singapore is 50,000 tonne of GHGs(CO2). Singapore, because of its superior technology, has emitted only 20,000 tonne of GHGs and as such is left with a surplus quota of 30.000 tonne. India can very well buy this surplus quota from Singapore. This is the gist of carbon trading.
PS: I'm open to correction.
Excellent bro for sharing such crystal clear information. I hope some publishers of eminent books on Environment will take a note and modify it with your explanation. ^:)^