How to Make Money from Carbon Credits?
Under the Kyoto Protocol, the developed countries have voluntarily decided that they will bring down the level of carbon they are emitting to the level of early 1990s. These countries have set different norms for their companies and factories to bring the level of carbon emission and other green house gases. Carbon Credits are a part of international emission trading norms. Credits are awarded to companies that reduce green house gases below their emission quota. The total annual emissions are capped and the market assigns a monetary value to any shortfall through trading. Business can exchange, buy or sell carbon credits in international markets at prevailing rates. These credits can be used to finance carbon reduction schemes between trading partners and rest of the world. Companies in developed nations have two ways to reduce emissions. One is reducing green house gases by adopting new technologies. Secondly, these companies can tie up with developing nations and help them setup new
