Tag Archives: carbon credits

Carbon Offsetting in Practice: Why the Quality and Mix of Carbon Projects Matter

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Carbon offsetting is often reduced to a simple calculation: estimate emissions, purchase an equivalent number of carbon credits, and claim that the impact has been addressed. In practice, the decision is much more complicated. A tonne of carbon dioxide equivalent may look identical in a spreadsheet, but the project behind that tonne can be very different. Some projects prevent emissions, some reduce them, and others remove carbon from the atmosphere. Storage may last for very different periods, and the risks associated with each project can vary substantially. For individuals and businesses trying to make more responsible climate decisions, the important … Continue reading →

A Glance at Carbon Finance

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The main objective of Clean Development Mechanism (CDM) is to promote sustainable development in developing countries and to allow industrialized countries to earn emissions credits from their investments in emission-reducing projects in developing countries. A particular CDM project cycle involves a wide range of transaction costs which may include the following: Project identification and selection: Costs incurred by project developers and potential investors in identifying prospective projects. Project development and baseline determination: Information costs related to the preparation of a project concept note providing relevant information on project baseline, expected additional emission reductions and corresponding costs. Project validation: The process of independent … Continue reading →