CFS Carbon Credits
A carbon credit is a 'license' to polute. It offsets the amount of CO2 producted during normal activities such as
driving or using lights.
A Carbon credit normally represent 1 tonne
of CO2 equivent
(CO2e).
There are two types of carbon credits: mandatory or
voluntary.
As a rule the stronger regulations the more valuable the carbon credit.
Eg European Union approved credits such as EU Allowance
Unit (EAU) or the United Nations Certified Emissions Reduction(UN CER)
unit are worth twice the price of a similar carbon credit in Australia.
Mandatory carbon
credits are that are required by law to
reduce or abate CO2 emissions as required. Examples of
different types mandatory carbon credits would be either a European Union Emission Reduction Unit
or an Australian Renewable Energy Certificate.
CFS will generate most of its revenue through the creation and trades
of mandatory carbon credits. Primarily United
Nations
Certified Emissions Reduction (UN CER) and Australian
Renewable Energy
Certificates (RECs).
Voluntary carbon
credits
Voluntary credits are credits that people and
organisations personally use to minimise their
environmental impact.
(aka carbon footprint). Internationally, CFS has already
started a range of carbon abatement programmes based upon energy
efficiency
to generate carbon credits. In Australia,
approximately 200,000 customers pay a 25%
Carbon credits are created through various schemes ranging from tree planting to installing nuclear power stations. The major issue of carbon credit trading is ensuring the 'quality' of various carbon credits. There have been many examples of 'poor' quality engineering leading to a lower environmental outcome than was planned. The most famous being the over-allocation of free emissions permits to the European power utilities. The power utilities then on-sold their free permits for about €4 Billions without any environmental benefit. CFS will only sell the highest quality carbon credits.
Carbon
Free Solutions Ltd