Consequence Global warming

Consequence planetary lovingnessing plantIntroductionClimate depart and a consequence human race(a) warming usher out be seen on the whole(a) nigh us. It has already started shaping each and every aspect of our lives in much than one ways from how we travel to what products we buy to where we live. Hence, at that place is a concern that the go for of non-re radical adequate fuels and new(prenominal) human activities ar increasing nursery gases in the atmosphere, contributing to world-wide warming. To avoid this, en olibanumiasm is spreading for cap-and- mess systems to consecrate the amount of degree centigrade copy dioxide emitted to Earths atmosphere.A bran- spick-and-span currency is emerging in innovation grocery stores. Unlike the dollars, Euros and yen that concern for tangible goods and human services, this new money ex channels for pollutionparticularly releases of degree centigrade dioxide, which atomic number 18 ca purposed by burning fogey fuels and are the heading ca utilization of world(prenominal) climate transmit. atomic number 6 attribute, as they are c aloneed, are poised to transform the world slide fastener system and thus the world economy. ampere-second reliances are used as a currency that acknowledges companies and individuals to compensate their coke waivers. This is through with(p) by either trim coke paper dioxide release directly or through deleteting their GHG outputs. Carbon ascribe originated historically from The United Nations whitened training Mechanism which was under the Kyoto protocol. It allows a fixed quantity of degree Celsius credits to be traded. It is important for tidy sum to jump their mend on the purlieu and buy nose candy credits to equilibrium what they puket centralise and drub towards excuse d give their offsets. Carbon handicraft as per the decipherable Development Mechanism (CDM) is a big line of reasoning in the open commercialize places. Project s such as development of renewable energy, astir(p) polluting industries, and planting carbon absorbing sinks are being funded by carbon credits. Companies and people are surfacely carbon conscious by reducing their arcs. M some(prenominal) types of events and workings potful generate carbon offsets. Renewable energy such as the wind farms, solar panels, geothermal energy, bio energy and lessened hydro turbines whoremaster create carbon offsets by replacing fogy fuels. separate varieties of offsets available for sale in the food market include those including methane capturing from landfills or livestock, oddment of harmful third estatehouse gases such as halocarbons, and carbon removal run acrosss (such as reforestation) that absorb carbon dioxide from the atmosphere. sack levels are increasing around the world and this has go forthed in a number of companies wishing to buy much carbon credits. This would result in an bewilderth in its market scathe and this wo uld raise businesses to perform much eco-friendly activities which would create more carbon credits to sell. create countries spend draw nearly $400-450 for every ton of reducing in carbonic acid gas, as compared to $10-$25 spent by ontogenesis countries. Indias GHG emission is under the fag and therefore, it can sell surplus credits to other countries. India is considered to possess well-nigh 31% of the entireness world carbon trade. This implies a trade chance of $25bn by 2010.This makes duty in carbon credits such a major business opportunity.Indiahas emerged as the leading horse in this race. more than than 300 Indian entities remove proceeded with their application for registering their CDM Project to avail carbon credits. Currently,1 carbon credit is worth 14 Euros. Indian companies can stick by higher incomes from carbon credits as compared to their core business. The planetary carbon credit market was estimated $30 billion exsert family andis it is increme nt at tremendous pace. There is a consider and a incident demand to reduce 1 billion ton of carbon emissions in the world, in order to deal with threats like global warming.Indian companies encounter squareized that money can be earned by becoming eco-friendly. With new infrastructure sector like power and steel create in India, the carbon credit market depart gain stature. The 800 trillion farming community in India in addition has an opportunity to sell Carbon Credits to developed nations.Companies like Wal-Mart, Dell and GE are exhalation GREEN and purchasing carbon credits. These companies are improving their brand name, consumer dominance in their products. Global Warming Some FactsGlobal Warming PhenomenonGlobal warming has brought just about one of the biggest challenges for planet earth in the twenty-first century. There is a global concern about the adverse impact of the emission of nursery gas (GHG) on the planet earths climate. Global warming is a phenomenon of gradual increase in earths temperature as a result of the increase in nursery gases. This is chief(prenominal)ly due to ii reasons increase in human activities which crap led to an increased production of glasshouse Gases, and a reduction in the Earths natural Carbon Dioxide due to Deforestation.The set surface house effect has led to an increase in the temperature of the atmosphere near the earths surface. Shortwave light comes from the sun to the earth, and it drop downes unimpeded through a cover of greenhouse gases composed mainly of water supply vapor, carbon dioxide, nitrous oxide, and ozone. Infrared radiation sickness reflects off the planets surface toward space but does non easily pass through the thermal blanket. Some of it is trapped and reflected downward, keeping the planet at an average temperature suitable to life, about 60F (16C).Increase in the quantity of greenhouse gases is trapping more heat and increasing global temperatures, making a treat that h as been beneficial to life potentially dissipated and harmful.The major natural greenhouse gases on Earth are babys room Gases% of Greenhouse EffectCarbon Dioxide (CO2)70%Methane (CH4)20%Nitrous Oxide5%Fluorinated Gases5%The atmospheric concentrations of CO2 and methane bemuse increased by 31% and 149% respectively above pre-industrial levels since 1750. These levels are considerably higher than at any while during the last 650,000 years. Effects of Global WarmingAction must(prenominal) be taken against greenhouse effect, otherwise it could lead to an increase in average global temperature surrounded by 2 and 4 degrees and this could move on as early as the year 2030. This increase in temperature would be more towards the poles as compared to the tropics. This would withal result in more winters becoming warmer. such an increase will make the world hotter than it has ever been in the last 100,000 years. The rate of increase in temperature will also be instant(prenominal) t han ever before. Just a comparison, a rise of approx 3 degrees Celsius subsequently the ice age took umpteen thousands of years. By the end of this century temperatures can reach those that were in the time of the dinosaurs making the survival of humans im practical. The make can already be seen- the ten hottest years since the 18th century deal been in the previous 15 years. Hurricanes will occur more frequently as nauticals heat up resulting in increased water evaporation. Evidence is building at an dangerous rate. Droughts Continental areas will ironic out in summer. Floods Sea levels are currently rising at a rate of around 1 mm each year due the top layer expansion of the oceans as they heat up and the polar ice caps melts. The predicted increase in the sea level by 2050 is between 20 and 50mm. This will cause greater flooding in coastal and low lying areas.Carbon procession A major featureOne of the major greenhouse gases is the carbon dioxide gas (CO2). Trees gro w and they absorb CO2 from the air. Forest clearance and the burning of wood (tropical rainwater forests) are adding the CO2 to the atmosphere. Deforestation is overtaketing out of control. The loss of the forests implies that there are lesser trees to absorb CO2.Despite disforestation making a large contribution towards global warming, it causes lesser contribution than fractional the annually total CO2 released, the remaining and major part comes from burning coal, fossil fuels and oils. The fossil fuels are consumed in cars, power stations and factories. Nearly half of the CO2 which is released by burning fossil fuels is absorbed back by the oceans. It is taken up by sea life or it is dragged to the ocean depths by the circulation of water. Recent studies have suggested that as the earth heats up, the oceans will experience less efficient in absorbing Carbon di-oxide, leaving more of CO2 in the atmosphere and hence adding further to global warming. The pursuance Pie Chart shows the various countries globally responsible for increasing shares of carbon dioxide emission. base news.mongabay.comEfforts to contain Global warmingIt is imperative to slow down the global warming as much as possible. This would in effect happen by using less fossil fuel, eliminating the uses CFCs altogether, and stopping irregular deforestation. This can be done through energy conservation, better use of habitual transport, more efficient cars, and energy efficiency by greater use of alternative sources of power which relieve oneselfs less CO2 than conventional sources and through renewable energy such as solar power. We have to stop deforestation of rain forests and start afforestation.A United Nations research panel has estimated that we should reduce global fuel use by 60% immediately so that we can stabilize the climate changes. Current fealtys by some governments act in CO2 reduction will set about global CO2 by just 4 6%. The developed industrialized nations produ ce most of the CO2, the developing nations of South America and Asia are increasing their CO2 release at a much greater rate, and by 2012 they will overtake the Western countries as the major producers of CO2. KYOTO PROTOCOL OVERVIEWKyoto Protocol A response to curtail Global WarmingThe Kyoto Protocol acts as an amendment to the world(prenominal) treaty of the United Nations Framework Convention on Climate assortment (UNFCCC). It pledges mandatory emission norms to the nations who have signed the protocol for the reduction of greenhouse gas emissions. It was established December 11, 1997 in Kyoto, Japan.Countries that ratify this protocol pledge to reduce their CO2 and five other greenhouse gases emissions, and/or pick out in emissions barter if they increase emissions of these gases.The Kyoto Protocol now encompasses more than clx countries around the globe and more than 60% of countries in terms of global greenhouse gas emissions. The Kyoto Protocol works upon a collective reduction of 5% compared to 1990 levels by 2008-2012. This treaty expires in 2012 and foreign talks have already begun in May 2007 to chalk out a new future treaty to succeed the current one.Source IPCC Third sound judgment Report. 2001 Climate transpose The Scientific Basis. Intergovernmental Panel on Climate Change Green house gases have a disastrous effect on global warming with varying proportions. This intensity is measured by the global warming potential of the gas. The GWP of carbon dioxide is one. One liothyronine of HFC-23 gas, for exemplification, has 11,700 times more green house effect as compared to CO2. CERs are awarded on the al-Qaida of global warming potential of the gas.CER to a gas = Tonnes of green house gas reduced X Global Warming voltage of the GasFeatures of Kyoto ProtocolAs per the Kyoto Protocol, Governments have been divided into two ample categories Developed countries (they have accepted GHG emission reduction obligations and they are mandated to provide an annual greenhouse gas inventory report) Developing countries (they have no GHG emission reduction obligations but they can participate in Clean Development Mechanism) As per the rules, Any Annex I country which fails to fall upon the Kyoto obligation would be penalized by been mandated to submit 1.3 times its emission allowances in the second commitment period for every ton of GHG emissions cap they transgress in their first commitment period.The objective of the protocol is the stabilization of greenhouse gas concentrations in the atmosphere at a level that would maintain dangerous anthropogenic interference with the climate system. It aims to Put a limit onclimate change and global warming Reduce arbitrary usage of fossil fuels and encourage development and use of renewable energy Encourage sustainable developmentOperation of Emission Trading SystemMechanisms under Kyoto Protocol The Kyoto Protocol pioneered by defining three innovative and clear-cut tractab leness mechanisms to reduce the overall costs of achieving the set emissions targets. These mechanisms enable countries and organizations to adopt efficient opportunities to reduce emissions and/or to remove carbon from the atmosphere. While the cost of putting a cap on emissions varies considerably from region to region, thebenefit for the atmosphere is the homogeneous, no matter where the action is taken.Joint Implementation (JI) The Kyoto Protocol provides clauses for developed countries to appliance come outs that reduce emissions, and/or remove carbon from the atmosphere as per the Emission Reduction Units (ERUs). These ERUs can be potentially used to meet the emission reduction targets. A JI start may involve, for example, replacing a coal-fired power plant with a more efficient combined heat and power plant. JI projects must have a prior laudation of all the entities involved, and must lead to emissions reductions or removal that are spare to any that would have occurr ed without the project. International Emission Trading (IET)The Kyoto Protocol also provides that developed countries can get carbon units from other developing parties and use them for meeting their emissions target. This enables developed countries to use low cost opportunities to reduce emissions. such countries must, consequently, be prepared to withdraw units when they do not require them for form with their own emission targets.CER Certified Emission ReductionClean Development Mechanism (CDM)Developed countries can take up GHG reduction project activities in developing countries where the cost of greenhouse gas reduction project activities is lower. The developed country would get the credits for meeting its emission targets. The developing country would get the capital and technology to implement the project. This technique is called Clean Development Mechanism.CDM covers projects in countries without any set targets, i.e. developing countries. Credits would be issued only for reductions if a project provides real and long-term climate change benefits. The main advantages for countries innkeepering CDM or JI emission reduction projects are the transfer of technology, attraction of foreign aiming funds, and the contribution to the countrys sustainable development.GLOBAL SCENARIOThe international CDM market has entered a high phase, having grown steadily after the Kyoto Protocol came into effect. The emission reduction targets during the first commitment phase of 2008 -12 for Annex II countries, are 713 Million tone CO2 eq. The initial national communication submitted by Annex I countries indicates a total demand of 846 Million tonne CO2 eq. per year based on the individual country commitment and action to reduce emissions.The Past highlights of the International carbon market are In 2006, market traded an estimated 1.6 billion tonnes of carbon dioxide equivalent (tCO2e) in all market segments compared to approximately 799 one thousand thousand tCO 2e in 2005. Similarly, the monetary apprise more than doubled from 2005 to 2006, with a total estimate of USD 22.5 billion for all market segments. In 2007, the market traded an estimated 2.6 billion tonnes of CO2e, at a total fiscal size of USD 23.6 billion.The projection for carbon market towards 2010 indicates With a high scenario, wherein the snobby sector predominates, the global carbon market can reach around USD 200 billion. With limited private sector participation and some surmisals, it can be restricted to as low as USD 4.6 billion. It is estimated that the real market will be somewhere in between these two extremes with a forecasted carbon trade of USD 30 billion.INDIAN SCENARIOIndia is presently one of the world leaders in development of CDM projects. It is due to the Indian Designated National means that more than 297 project proposals with an emission reduction potential of over 297 million t CO2 have received the approval of the official host country. A wide range of project sizes and types in India help international buyers find the project of their choice or work upon a project portfolio to reduced risks. There is a huge evident potential for renewable energy generation from natural factors such as agriculture countervails, hydro and wind. thermal electricity generation offers unlimited opportunities to improve energy efficiency. One example is the coal-fired power plants and the related transmission and distribution system. The chemical industry also allows reductions of industrial GHG which have large warming potentialsThe Carbon RUSH JSW stainThe CDM has made environmental responsibility acceptable for India Industries. Recycle, reuse and reduce have become commercially viable as companies reprocess waste and heat, and cut down carbon emissions.Indias JSW Steel has been awarded about 5.4 million carbon credits, which includes 4 million carbon credits obtained from the single largest issuance of emissions permit by the U.N. to a Kyoto Protocol project. The 4 million credit issuance accounted for 6.5 % of the total 62 million CERs which were allocated by the UN. A total of around with 42 % of all issued credits have been assigned to ongoing projects in India. CERs were issued to two projects owned by JSW Steel for reducing greenhouse gas emissions between 2001 and 2006. Their CDM projects cut gases emitted through power generation from imported coal and waste gases from JSWs steel manufacturing operations.Current Problems with the Environment Integrity of CDM a practical statusUnfortunately, despite thrust from the environmental community and other sectors, the CDM rules and the project name document still offer little guarantee of environmental integrity. The main weaknesses of CDM procedures in that regard include The contribution to sustainable development including a transition away from carbon dirty technologies and an emphasis on imperative social and environmental impacts is often treate d as an optional supererogatory rather than a central project feature. guide reform in CDM procedures so that there is transparency accountability of divers(prenominal) players (penalties on consultants and DOEs) Demand price negotiations have to be made public, otherwise will lead to corruption Demand simpler procedures (less convoluted methodologies for additionalityetc) so that meaningful projects can work Large public companies (GAIL, SAIL, IOCL, etc)are yet to take off with CDM business, due to leave out of knowledge of CDM opportunities Potential in small and medium enterprises yet to be tapped Lack of transparency in CDM market Limited bilateral investment for project funding Governments role critical as a facilitator with different bilateral /multilateral organizations in organizing Carbon trade fairs or expos fare of Bilateral CDM projects need to be increased with more foreign investment for project funding Lack of awareness about CDM Tedious process High cost involve d for documentation, validation and Monitoring Verification of emission reductions Inability of new promoters to bring in equity to be able to avail of financingAs mentioned above, these problems stem in part from the weaknesses in the existing rules. At the same time, while it is possible that these flaws will be rectified by the CDM Executive Board in the near-future, the extreme pressure from investors to keep carbon prices at their lowest is forcing the project developers to cut corners. profession ImplicationsThe London financial marketplace has established itself as the center of the carbon finance market as a market for affair of the carbon emissions as per the Kyoto Protocol. This was estimated at $60 billion in 2007. The irony in the carbon concern endeavor could be noticed from the fact that it was the major multinational corporations who came together in the G8 Climate Change Roundtable, at the January 2005 solid ground Economic Forum. This group was primarily a busin ess group organize by 23 companies. Since, these corporations are the ones who have been chief proponents of over pulmonary tuberculosis, it seemed like a method by way of which they could clear their conscience of the damage that they were cause to the environment and planet earth. In June 2005 the Group published a line of reasoning stating that there was a need to act on climate change and the stress was on market-based solutions. The business in the UK and elsewhere have come out strongly in livelihood of emissions profession as a key tool to limit the effects of climate change, and these efforts have been support by Green NGOs. As per the Unites Nations Food and Agricultural Organisation FAO, approx 32 million acres of forests vanish each year, majority of them are in the tropics. The most important reason for forest clearing is the increasing need for agricultural land. The WWF has warned that if appropriate steps are not taken, more than 60 per centum of the rain fores ts in the Amazon lavatory could disappear by 2030.Carbon trading was introduced by the Kyoto Protocol as a possible solution of the efforts to reduce GHG emissions to below 1990 levels by 2012. The main rate of flow idea was that the countries whose emissions are below the prescribed emissions could then sell those excess carbon credits to countries that do not meet their own caps.The caps are proposed to decrease over time and the price of carbon credits would rise due to scarcity. These signals towards a changing trend of carbon emission trading which would include a new global carbon emission based investment market, where companies and countries have incentives to invest in developing projects across the globe. All this is happening for the wrong reasons, as this is a method of obtaining the highly coveted carbon credits.This seems to be a sore point for those against carbon trading. As an example, Google has a market value of $200 billion, while all the worlds great forests a re valued at nothing. The scotch argument says that it makes it financially more appealing to countries not to allow their forests to be cut down.Moral tradeoffSome critiques of Carbon Emission Trading believe that there is a huge moral trade off in place. A study on child disturbance centres in Israel showed that imposing monetary fines on late coming parents did not teach them a lesson in punctuality in fact, this created an economic trade off as now the parents could voluntarily come late and get away by paying fines. Drawing an analogy from it, the carbon credit trading is on similar lines except that one riotous can be willing to pay for extra emissions by compensating the other firm which reduces its carbon emissions. This increases a scarcity and hence the price of carbon pollution. tush the interests of both the rich the poor be served?The major concern about the entire carbon credit trading evolution is the belief that the carbon emission trading really serves rich nati ons only the main stream issue being that carbon trading could put the vital resources of the developing world in the hands of developed nations who can then use carbon credits as a way to counter the reductions of their own GHG emissions at the same time.The World Bank recently launched the Forest Carbon Partnership Facility (FCPF), a fund which is financed by the leading countries such as UK, Germany, the Netherlands, France, Switzerland, Denmark and Finland. The $160 million fund would be used to support programs targeting the drivers of deforestation and develop concrete activities to reach out to poor people who depend on forests to improve their livelihoods. It will also help developing countries build the technical, regulatory, and sustainable forestry capacity to reduce emissions from deforestation and degradation.There has perpetually been confusion over the exact role that the World Bank is difficult to play in carbon trading market. The World Bank claims to be aiming at reducing global deforestation by 10 percent by 2010. But its critics claim the World Bank has traditionally been an forefinger of deforestation. There has also been concern over the consequences of carbon trading precis on local forest communities that earn their daily living from the forests. substantiating with an example -In the Democratic Republic of Congo (DRC) the World Bank is approach opposition from Pygmy groups and local communities which rely on the Congo basin for their living. There have been reports that accuse the Bank of encouraging commercial enter practices while ignoring sustainable forestry and conservation. The report also claims that the financial benefits of logging have gone to foreign firms, not the local ones. This makes one wonder what the real intentions of the World Bank are.The Million Dollar QuestionEMISSIONS TRADING COMMODIFIES Carbon. Does this truly Help Solve Climate Change problem?Exponents of carbon trading see markets as the best mechanis m for reducing emissions. The critics, on the other hand, believe that carbon trading is a devils bargain that navigates the profits to polluters. You bank mould problems just by using money, the old saying goes. Capitalists have a monetary solution to problems and they believe that the markets are the solutions to everything. They reverse this comparability by turning problems from money-hoarding pits to money-makers. Essentially, they try to seek the profit motive to recruit societys woes by transforming problems into commodities. This is the set strategy behind the emerging carbon trading markets. The Solution as per the Carbon Trading ProponentsBy trading the crest carbon emission rights, the rights become scarcer and hence more valuable. Cap-and-trade markets help solve climate change by lowering carbon emissions while generating wealthiness for the developing nationsIf only it were so simpleThe first contentious headland is about how to distribute carbon emission rights auction or allocation. In 2006, the experiment with carbon credit pricing came to a collapse when it became know that the EU was, either naively or corruptly, handing out too many emission rights to companies based on their estimates. Obviously, their emissions came out to be much lower which gave them a right to trade the left over unconsumed carbon credits. There seemed no real intention of reducing the carbon emissions. The dirtier you are, the big your entitlement . . . the polluter was paid. British journalist George Monbiot. The second problem with carbon trading is about mandatory versus voluntary markets. The US, the largest carbon emitter in the world has not signed onto the Kyoto Protocol. To fill this regulatory gap, voluntary carbon markets such as the Chicago Climate Exchange have sprouted up. With proper market design which implies no price cap and a financial penalisation for non-compliance -carbon trading forces the movement to cleaner technology and consequent emissions reductions. Carbon trading critics charge and claim that the financial benefits overshadow environmental concerns. With the carbon price suppressed and lowered, polluters energy providers, utilities, oil companies etc have little incentive to agree the rising GHG emissions, thus making the current system undermine the environment and the planet. Also, critics see it as an extension of colonialist exploitation. The third problem relates to the monetary and economic aspect. In reality cap and trade carbon markets have done little to reduce emissions and are plagued by corruption and inefficiency. The worlds carbon trading markets are becoming increasingly multifactorial and this threatens another sub-prime style financial crisis that could again destabilise the global economy.There is also a distinct smell of middlemen involvement. The majority of the trade is carried out not between polluting industries and factories cover by carbon trading schemes, but by banks and in vestors who profit from speculation on the carbon markets packaging carbon credits into increasingly complex financial products.ConclusionA rational reasoningEven as they gain popularity as a carbon mitigating solution, carbon offsets have often been dubbed under considerable criticism for diluting collective action against global warming. The truth, however, exists in between. Proponents exist on both sides of the debate.We all participate in the consumption of fossil-fuel energy. These emit large amounts of climate-changing CO2 and other GHG gases. The terms carbon offset and carbon neutral have been used as a misnomer it is real the idea of erasing the negative impact of our daily carbon emissions which drives the carbon offset market and its related controversy. A rational reasoning says that You cannot make up for the use of carbon buying the power of money to leverage yourself into a position of freedom from responsibility for emitting it once the damage is done, its don e. Ultimately what it all boils down to is the question of choosing from the rich display of effective opportunities that can be adopted if necessary actions are taken while ignoring, at the same time, the capitalistic monetary solutions like offsets.