Other Answers (7)

• Carbon credit:
  
  The Kyoto Protocol has created a mechanism under which countries that have been emitting more carbon and other gases of greenhouse gases (GHGs) have voluntarily decided that they will bring down the level of carbon they are emitting to the levels of early 1990s; thus carbon credits are generated by enterprises in the developing world that shift to cleaner technologies and thereby save on energy consumption, consequently reducing their GHGs.
  
  A company has two ways to reduce emissions. One, it can reduce the GHGs (greenhouse gases) by adopting new technology or improving upon the existing technology by attaining to the newer emission norms. Alternatively, the company may tie up with developing nations and help them set up new technology that is eco-friendly, thereby helping developing country or its companies %26#039;earn%26#039; Credits. India, China and some other countries have the advantage because they are developing countries. Any company, factories or farm owner in India can get linked to United Nations Framework Convention on Climate Change (UNFCCC) and know the %26#039;standard%26#039; level of carbon emission allowed for its outfit or activity. The extent to which they are emitting less carbon (as per standard fixed by UNFCCC) they get credited in a developing country. This is called ‘carbon credit’. These credits are bought over by the companies of developed countries - mostly EU countries.
  
  These arrangements are designed to allow individuals and organizations to reduce emissions directly or by participating in programs that, through various energy-conservation techniques and emissions-trading initiatives, attempt to achieve a net reduction in greenhouse gases.
  
  For further information on environmental issues please refer
  http://www.environmentengineering.blogsp... http://www.environmentengineering.blogsp...
• Exactly! Which is why Algore loves it. It makes him money without actually doing a ****ed thing about the actual problem. A PERFECT Liberal solution!
• You actually missed the point.
  The purpose is to encourage companies to reduce emissions. If one of two companies manages to do so, the total amount of emissions is anyway lower than what it would have been if both companies had done so. The fact that credits are sold to another company only has the purpose to dicrease the fines companies have to pay for high emissions