How It Works
Corporations have multiple ways to balance their carbon liability. They can reduce their carbon emissions (their "carbon footprint") through capital investment, projects and demand reduction. They can purchase emission permits, be allocated quotas (such as European Union Allowances (EUA)) or buy carbon credits. The latter are largely produced by CDM projects (Clean Development Mechanism) and Joint Initiatives. These credits are largely traded in form of Certified Emission Reduction (CER), or Emission Reduction Unit (ERU). Voluntary Emissions Reduction (VER) have a similar function but have not registered / cannot be registered under the rules of the Kyoto Protocol.
Read more about this topic: Weighted Average Cost Of Carbon
Famous quotes containing the word works:
“Your hooves have stamped at the black margin of the wood,
Even where horrible green parrots call and swing.
My works are all stamped down into the sultry mud.”
—William Butler Yeats (1865–1939)