How to Understand Carbon Trading

Step-by-Step Guide

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   Step 1: Acquire emission permits.

   These are issued by governments that administer a carbon trading program according to the size of your company and what it does.
   
   Some companies that emit large amounts of carbon dioxide fulfill key roles in the economy and must be allowed to continue operating, yet even these are required to reduce their emissions.
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   Step 2: Reduce your emissions.

   You will accumulate a carbon credit for every ton of carbon dioxide you don't emit (up to what your emission permit allows).
   
   You can reduce your emissions through methods such as carbon sequestration, consolidating your offices or developing "green" technologies. , A common way to do this is by planting trees.
   
   For every ton of carbon dioxide, you take out of the atmosphere, you earn one credit. , There are several online trading firms that specialize in trading carbon credits.
   
   The value of the credits is determined by the demand for them. ,, Most carbon trading websites have calculators that can help you determine your carbon footprint and afford you carbon credits if you make home improvements that reduce greenhouse gasses, such as installing solar panels. , The market for carbon credits works very much like the market for other commodities.
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   Step 3: Take carbon dioxide out of the atmosphere.

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   Step 4: Offer your extra credits for sale.

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   Step 5: Buy carbon credits so your company can emit more carbon dioxide in excess of your emission permit.

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   Step 6: Make your personal carbon footprint smaller by purchasing carbon credits to offset activities such as plane trips

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   Step 7: use of a car or running your home air conditioner.

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   Step 8: Invest in carbon credits by buying them and then selling them for a profit.

Detailed Guide

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